US-based Calumet Specialty Products Partners has completed the sale of San Antonio refinery and related assets to Starlight Relativity Acquisition company.
The San Antonio plant has a permitted capacity of 21,000 barrels a day, processing crude oil and condensate mainly from the Eagle Ford basin.
Presently, the refinery produces LPG, naphtha, regular and premium gasoline, commercial and military jet fuel, atmospheric tower bottoms and ultra-low sulfur diesel.
There are nearly 250,000 barrels of storage capacity at the plant and around 200,000 barrels of additional crude oil storage capacity at a crude oil terminal based in Elmendorf, Texas.
The related assets include a crude oil terminal and pipeline, which has been acquired by Starlight.
Starlight will shell out $63m in cash for the acqusition
Starlight will shell out $63m in cash for the San Antonio plant, property and equipment, plus adjustments for net working capital, inventories and post-closing amounts.
Calumet CEO Tim Go said: “The divestment of the San Antonio refinery represents another step forward in Calumet’s strategic transformation.
“This transaction further de-levers Calumet’s balance sheet, reduces earnings volatility by lowering our exposure to fuels refining, and allows the Partnership to focus its time and capital more intently on our higher-return core Specialty Products business.”
Go added, “I want to thank our employees at San Antonio for their continued hard work and dedication, particularly this past year where they have delivered significant improvement to both our operational and financial performance.”
Calumet announced that it has also reached an agreement with TexStar Midstream Logistics to settle all outstanding litigation between the two parties, which will include the release of a $38m balance sheet liability.
Based in Indianapolis, Indiana, Calumet operates ten manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
It processes crude oil and other feedstocks into customized lubricating oils, solvents and waxes used in consumer, industrial and automotive products.
