Par Pacific acquires Wyoming refinery, logistics assets

Par Pacific Holdings Inc., Houston, has completed its previously announced deal with Black Elk Refining LLC for the purchase of Wyoming Refining Co., which operates an 18,000-b/d refinery in Newcastle, Wyo., and through its wholly owned subsidiary Wyoming Pipeline Co. LLC, related logistics assets in the region (OGJ Online, June 15, 2016).

Par Pacific closed the transaction on July 14 for a total consideration of $271.4 million, including an assumption of about $58 million of debt, the company said.

With the acquisition of Wyoming Refining and Wyoming Pipeline now finalized, Par Pacific has taken ownership of the Newcastle refinery as well as the following assets:

• The 140-mile Thunder Creek crude oil pipeline gathering system in northeast Wyoming that provides the refinery direct access to Power River basin crude feedstock as well as direct connection to the Butte pipeline, which enables access to Bakken crude supplies.

• A 40-mile clean products pipeline system that feeds into the Magellan Products pipeline to serve markets in Rapid City, SD.

• A proprietary jet fuel terminal in Rapid City and jet fuel pipeline connecting the terminal to Ellsworth Air Force Base.

• About 650,000 bbl of crude and refined product tankage, with opportunities to expand these already identified.

Upon announcing the proposed deal in June, Par Pacific said it planned to add 4,000 b/d of isomerization capacity at the Newcastle refinery by yearend.

The refinery, which generates a clean product yield of about 95%, currently features the following processing capacities:

• Crude distillation: 18,000 b/d.

• Residual fluid catalytic cracking: 7,000 b/d.

• Catalytic reforming: 3,300 b/d.

• Alkylation: 1,300 b/d.

• Naphtha hydrotreating: 3,300 b/d.

• Diesel hydrotreating: 6,000 b/d.

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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