Phillips 66 Converting Louisiana Refinery


Phillips 66 (NYSE: PSX) has announced that it plans to convert its Alliance Refinery in Belle Chasse, Louisiana, to a terminal facility.

The conversion is expected to take place in 2022, Phillips 66 highlighted. The refinery employs approximately 500 employees and 400 contractors, according to the company.

“We made this decision after exploring several options and considering the investment needed to repair the refinery following Hurricane Ida,” Greg Garland, the chairman and chief executive officer of Phillips 66, said in a company statement.

“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,” Garland added in the statement.

“Our decision was a difficult one, and we understand it has a profound impact on our employees, contractors and the broader Belle Chasse community. We will work to help them through this transition and support them as Alliance takes on a new role in our portfolio,” Garland went on to say.

Built in 1971, the Alliance Refinery, which is situated on the Mississippi River, 25 miles south of New Orleans, processes mainly light, low-sulfur crude oil, Phillips 66 highlights on its website. It receives domestic crude oil from the Gulf of Mexico by pipeline and U.S. tight oil by marine transport. The refinery can also receive foreign crude oil by pipeline connected to the Louisiana Offshore Oil Port.

The single-train refinery’s facilities include fluid catalytic cracking, alkylation, coking and hydrodesulfurization units, a naphtha reformer and aromatics units that enable it to produce a high percentage of gasoline, diesel and aviation fuels, Phillips 66 notes on its site.

The Bureau of Safety and Environmental Enforcement (BSEE) first activated its hurricane response team due to Ida on August 27. At its peak, Ida shut in 95.65 percent of Gulf of Mexico oil production on August 29 and 94.47 percent of Gulf of Mexico gas production on August 31, BSEE figures show. The organization’s final update on evacuation and shut in production statistics for Ida was published on September 23.

On September 1, Phillips 66 announced that it would contribute $500,000 to the American Red Cross to assist relief efforts after Hurricane Ida. On September 7, the company said it would contribute an additional $500,000 to the American Red Cross to assist relief efforts in the states affected by the hurricane. Phillips 66 confirmed on September 7 that all of its employees in the affected areas were accounted for and safe.

Phillips 66 describes itself as a diversified energy manufacturing and logistics company with unique businesses in refining, midstream, chemicals and marketing and specialties.

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