Shell Oil Products U.S. Sells Puget Sound Refinery to HollyFrontier Corporation

HOUSTON (May 4, 2021) — Equilon Enterprises LLC d/b/a Shell Oil Products U.S. (Shell), a subsidiary of Royal Dutch Shell plc, has reached an agreement for the sale of its Puget Sound Refinery near Anacortes, Washington, to a subsidiary of HollyFrontier Corporation, an independent refiner headquartered in Texas, for $350 million in cash plus the value of the hydrocarbon inventory. The transaction is expected to close in Q4 2021, subject to regulatory clearance and other customary closing conditions.

The divestment is part of Shell’s strategy to reduce its global refinery footprint to core sites integrated with the company’s trading hubs, chemicals plants and marketing businesses. These high-value energy and chemical parks will produce more low-carbon fuels and speciality chemicals for our customers.

“This is another step towards reshaping our refining portfolio to drive resilient returns,” said Robin Mooldijk, Shell’s executive vice president for manufacturing. “HollyFrontier is a strong operator and we believe they will continue the refinery’s legacy of prioritizing safety, environmental performance and care for people at the site and within the community.”

The agreement covers the sale of Shell’s Puget Sound Refinery, the on-site cogeneration facility and the associated logistics infrastructure, as well as the product off-take agreements in support of Shell’s existing retail marketing business in the Pacific Northwest. Shell’s off-site logistics assets are excluded from the sale.

The Puget Sound Refinery is currently designed to process approximately 149,000 barrels per day of crude oil. The refinery produces multiple types of gasoline in addition to fuel oil, diesel fuel, propane, jet fuel, butane and petroleum coke. It also produces nonene and tetramer.

As the deal progresses towards closing, Shell’s Goal Zero safety program will remain in full effect, with a focus on a safe transition and care for our employees throughout this time of change.

All employees providing support to Shell’s Puget Sound Refinery will be offered employment with HollyFrontier.