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Posted: Nov 10, 2021 5:31 AMUpdated: Nov 10, 2021 7:18 AM
Phillips 66 Announces Refinery Change
Tom Davis / OKEnergyToday.com
OKEnergyToday.com reports Phillips 66 says it’s converting its Alliance Refinery in Belle Chasse, Louisiana into a terminal facility in the coming year after the operation suffered more than $1 billion damage from a recent hurricane. As a result, some 900 jobs are in jeopardy.
Damage from Hurricane Ida, and the cost to fix it, has led Phillips 66 to make the conversion. The Alliance Refinery employs approximately 500 employees and 400 contractors.
The company’s recent third quarter financial report indicated the refinery had $1.3 billion in damages from the hurricane. The refinery was flooded and was closed ever since.
The Alliance Refinery was built in 1971 and has refined light crude oil into gasoline, diesel and aviation fuels. It also produced feedstocks for other petrochemical products, home heating oil and petroleum coke.
Most of the refinery’s products were sent by pipeline to the East Coast, and those connections are expected to be kept in use once the site is turned into a terminal.
“We made this decision after exploring several options and considering the investment needed to repair the refinery following Hurricane Ida,” said Greg Garland, Chairman and CEO of Phillips 66. “Alliance’s existing infrastructure and Gulf Coast location make it an attractive midstream asset. Phillips 66 will continue to be a major refiner with 12 facilities in the U.S. and Europe.”
“Our decision was a difficult one, and we understand it has a profound impact on our employees, contractors and the broader Belle Chasse community,” Garland said. “We will work to help them through this transition and support them as Alliance takes on a new role in our portfolio.”
Source: Business Wire/WDSU TV
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