Chevron finds buyer for BC refinery and fuel distribution
Red Deer-based Parkland Fuel announced the acquisition of Chevron Canada's downstream assets, including the Burnaby Refinery, 129 Chevron-branded gas stations, 37 commercial cardlock centres, three marine fuelling locations, three fuel terminals and Chevron's aviation-fuel supply to the Vancouver airport.
Parkland agreed to pay $1.46 billion for the assets plus $186 million in working capital. The company also announced the issuance of 24 million new shares and $500 million in new senior notes to help finance the acquisition.
Chevron put the assets up for sale last June. The 52,000 bbl/day Burnaby refinery processes mostly light sweet crude and has a very limited ability to process heavy sour feedstock from the oil sands. Chevron did not book additional volumes on Kinder Morgan's Trans Mountain Expansion line.
Chevron was suspiciously quiet on the sale and chose not to issue a press release.
Parkland is already one of Canada's largest retail gas station operators, with more than 1,800 stations. The deal is expected to close sometime in the second quarter.