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FINDLAY, Ohio — Marathon Petroleum Corp. (MPC) has agreed to buy BP’s Texas City refinery for $598 million, plus inventories estimated at $1.2 billion.
The purchase includes refinery, three intrastate NGL pipelines originating at the refinery, an allocation of BP`s Colonial Pipeline Company shipper history, four terminals, retail marketing contract assignments for approximately 1,200 branded sites and a 1,040 megawatt cogeneration (cogen) facility.
"This world-scale refinery and related assets complement our current geographic footprint and align well with our strategic initiative of growing in existing and contiguous markets to enhance our portfolio. This acquisition will provide MPC the opportunity to capture synergies across our existing Gulf Coast operations; optimize commercial and process improvements; expand our retail presence in the Southeast; and enhance our ability to sell products into export markets," said MPC President and Chief Executive Officer Gary R. Heminger. "The acquisition of these assets at an attractive price provides the opportunity to add significant long-term value to our shareholders. We are pleased that MPC`s financial performance and cash generation allow us to continue our balanced approach of making value-enhancing investments in the business and returning capital to our shareholders."