Phillips 66 to Convert Alliance Refinery to Terminal Facility

Rhea-AI Summary

Phillips 66 (NYSE: PSX) announced plans to convert its Alliance Refinery in Belle Chasse, Louisiana, into a terminal facility, expected to be completed in 2022. This decision follows extensive evaluation and considerations about repairing damage from Hurricane Ida. CEO Greg Garland emphasized the refinery's transformation into a midstream asset due to its existing infrastructure and location. The transition will significantly affect approximately 900 employees and contractors, and the company is committed to supporting them through this change. Phillips 66 continues to operate 12 refineries in the U.S. and Europe.

Positive

• Conversion of Alliance Refinery into a terminal facility is a strategic move to optimize asset utilization.
• The company remains robust, continuing to operate 12 refineries across the U.S. and Europe.

Negative

• Conversion could lead to job losses for approximately 900 employees and contractors.
• Transitioning from a refinery to a terminal facility may indicate challenges in refinery operations post-Hurricane Ida.

HOUSTON--(BUSINESS WIRE)-- Phillips 66 (NYSE: PSX) announced today it plans to convert its Alliance Refinery in Belle Chasse, La., to a terminal facility. The conversion is expected to take place in 2022.

“We made this decision after exploring several options and considering the investment needed to repair the refinery following Hurricane Ida,” said Greg Garland, Chairman and CEO of Phillips 66. “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.”

The Alliance Refinery employs approximately 500 employees and 400 contractors.

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

About Phillips 66
Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Headquartered in Houston, the company has 14,100 employees committed to safety and operating excellence. Phillips 66 had $56 billion of assets as of Sept. 30, 2021. For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211108006014/en/

Jeff Dietert (investors)

832-765-2297

jeff.dietert@p66.com

Shannon Holy (investors)

832-765-2297

shannon.m.holy@p66.com

Thaddeus Herrick (media)

855-841-2368

thaddeus.f.herrick@p66.com

Source: Phillips 66

FAQ

What is Phillips 66 planning for its Alliance Refinery in Louisiana?

Phillips 66 plans to convert its Alliance Refinery into a terminal facility, expected to be completed in 2022.

Why is Phillips 66 converting the Alliance Refinery?

The conversion is due to the investment required to repair the refinery post-Hurricane Ida, making the site more attractive as a midstream asset.

How many employees will be affected by the Alliance Refinery conversion?

The conversion will affect approximately 900 employees and contractors.

What does Phillips 66's future refinery operations look like after the conversion?

Phillips 66 will continue to operate 12 refineries in the U.S. and Europe even after the conversion of the Alliance Refinery.