Bloomberg reports that Marathon Petroleum Corp. is in ‘advanced discussions with several parties’ on the possible sale of its Kenai refinery as the company is looking to streamline its operations and change focus on renewables.
A short statement released to KSRM from Marathon Petroleum reads:
“Marathon Petroleum Corporation continues to progress its portfolio optimization by pursuing strategic alternatives for the Kenai refinery, including a potential sale. Additionally, MPLX announced it is pursuing strategic alternatives for its Alaskan logistics and storage operations, which could include a sale.”
The Motley Fool published Marathon Petroleum’s Q3 Earnings Call transcript in which CEO Mike Hennigan said that advanced discussions are the main reason why the company decided to tell the market:
“With respect to Kenai … normally I’m not a big fan of announcing stuff until things are done or not as a general rule. But in this particular case, we have done an analysis, and the reason we disclose it now is we’re in pretty advanced discussions with several parties.”
The Kenai Marathon refinery has a crude oil capacity of 68,000 barrels per calendar day processing, mostly, Alaska domestic crude along with limited international crude to manufacture gasoline, distillates, heavy fuel oil, asphalt, and propane.
In 2018, Marathon acquired all outstanding shares of Andeavor, which included the Kenai Refinery. At that time, it was processing up to 72,000 barrels per day and employed 225 full time employees on staff. Andeavor changed their name from Tesoro Corporation in 2017 after acquiring Western Refining Inc.
