CALGARY — Husky Energy Inc. has agreed to sell its light oil refinery in Prince George, B.C., for $215 million in cash plus adjustments to Tidewater Midstream and Infrastructure Ltd.
Tidewater may also pay up to an additional $60 million over two years under certain contingencies.
The refinery uses crude oil and condensate from B.C. and Alberta to produce about 12,000 barrels per day of low-sulphur gasoline and diesel fuel.
The two Calgary-based companies say the refinery’s employees will be retained after the deal closes.
Tidewater says the Prince George region is generally in short supply of refined products.
Husky will buy 90 per cent of the refinery’s diesel and gasoline capacity for five years, with prices subject to review, to supply its Husky retail gasoline stations and Husky retail partners.
The sale is part of Husky’s plan to focus on a series of physically linked assets in Western Canada as well as its offshore oil and gas production off Canada’s East Coast and in the Asia-Pacific region.
Husky said Friday that it continues to conduct a strategic review of its retail and commercial fuels businesses
This report by The Canadian Press was first published Oct. 4, 2019.
Companies in this story: (TSX:HSE, TSX:TWM)
The Canadian Press