Phillips 66 to convert Alliance Refinery to terminal facility
Phillips 66 said it plans to convert its Alliance Refinery, which was built in 1971, to a terminal facility. The conversion is expected to take place in 2022.
Located on the Mississippi River in Belle Chasse, Louisiana, U.S.A., 25 miles south of New Orleans, the Alliance Refinery processes mainly light, low-sulfur crude oil. Alliance 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 fuel and aviation fuels. Other products include petrochemical feedstocks, home heating oil and anode-grade petroleum coke.
The majority of its refined products are distributed to customers in the eastern United States through major common-carrier pipeline systems and by barge.
The Alliance Refinery employs approximately 500 employees and 400 contractors.
“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.”
“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, Texas, U.S.A., the company has 14,100 employees committed to safety and operating excellence. Phillips 66 had USD56 billion of assets as of September 30, 2021.