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Phillips 66 to Sell Refinery as US Pivots to Low-Carbon Fuel

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The move comes after the firm’s refining business took a beating over the first two quarters of the year.

Energy and chemicals firm Phillips 66 revealed plans Tuesday to sell the Alliance refinery in Belle Chasse, LA in response to “the evolving energy landscape,” Reuters reported this week.

A potential buyer is currently engaged in discussions with the company to acquire the 255,000 bpd facility, the news organization said, citing information from unnamed sources familiar with the talks.

The move to divest the refinery comes as the petroleum industry has faced a massive slowdown during the COVID-19 pandemic as Americans curbed travel and commuting to work. At the same time, there is a push within the automotive industry and other areas of the economy to utilize more green sources of energy and fuel.

“Across our portfolio, we are advancing our strategic projects and pursuing lower-carbon opportunities,” Greg Garland, the firm’s chairman and CEO, said in a release announcing the Phillips 66’s Q2 2021 financial results.

During the Q2, the company’s Refining business posted a pre-tax loss of $729 million after a pre-tax loss of $1 billion in Q1 2021.

Phillips 66’s refinery in Belle Chasse contains facilities for fluid catalytic cracking, alkylation, coking, and hydrodesulfurization units, information on the company’s website states. Products made at the 2,437-acre site are primarily distributed in the eastern United States.

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