Oil producer Hilcorp eyes purchase of shut Louisiana refinery -sources

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HOUSTON, Sept 24 (Reuters) - Houston-based oil producer Hilcorp (HILCO.UL) is evaluating Phillips 66's (PSX.N) refinery in Alliance, Louisiana, for conversion into an oil export terminal, said four sources familiar with the matter, a move that would eliminate it as a source of motor fuels.

Hilcorp, the largest privately owned U.S. oil producer, with operations from Alaska to Pennsylvania to Texas, did not reply to questions about its interest in the facility, which occupies 2,400 acres along the Mississippi River.

The sources said a buyer was scheduled to visit the refinery this week.

Phillips 66 declined to comment on a buyer's possible visit to the refinery this week.

The hurricane-damaged refinery remains for sale and its "marketing process is ongoing,” said Phillips 66 spokesperson Bernardo Fallas. The company plans to repair the storm damages and restart the facility, he said.

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“The U.S. refining business in the future is going to be smaller, not bigger,” Phillips 66 Chief Executive Officer Greg Garland said last month as he laid out plans to advance businesses in renewable diesel, hydrogen and materials for electric-car batteries.

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The Alliance refinery is one of three along the Gulf Coast that has been offered for sale this year. The other two are LyondellBasell Industries’ (LYB.N) 263,776-bpd Houston refinery and Royal Dutch Shell’s (RDSa.L) shuttered 211,146-bpd Convent, Louisiana, refinery.

The Alliance refinery could still have a future in the current energy transition, said John Auers, executive vice president with refinery-consultants Turner, Mason & Company

“It’s still a viable refinery,” Auers said. “We’ve had a lot of capacity turned off. It could potentially come back pretty strong.”

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