The facility, which has 50,000 barrel per day permitted capacity, is located in Superior, Wisconsin.
Under the deal, Husky will acquire refinery’s associated logistics such as two asphalt terminals, 3.6 million barrels of crude and product storage, as well as fuels and asphalt marketing business.
Husky intends to hold around 180 workers at the refinery. The deal will allow Husky to increase its downstream capacity to around 395,000 barrels per day (bbls/day).
The acquired facility has direct connectivity to the firm’s pipeline terminal in Hardisty of Alberta through the Enbridge mainline.
It will also help Husky to accelerate asphalt production, helping to meet the growing demand associated with increasing infrastructure spending across North America.
At present, Superior Refinery produces around 9,000 bbls of asphalt per day, 17,500 bbls of gasoline per day and 10,900 bbls of diesel per day. It is also involved in the production of heavy fuel oils.
Subject to regulatory approval and closing adjustments, the deal is expected to complete in the fourth quarter of this year.
Husky Energy CEO Rob Peabody said: “Acquiring the Superior Refinery will increase Husky’s downstream crude processing capacity, keeping value-added processing in lockstep with our growing production.
“Upon closing, this new asset will immediately contribute to increased earnings and funds from operations.”
With around 5,200 employees, Husky produces around 320,000 barrels of oil equivalent per day on an average. The company operates in two main areas, including integrated corridor and offshore businesses.
