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RE: Valero Energy to Purchase Murphy's Meraux Refinery

Home Forums Refining Community Refinery News Valero Energy to Purchase Murphy’s Meraux Refinery RE: Valero Energy to Purchase Murphy's Meraux Refinery


Charles Randall

Here is update on Valero purchase of Murphy’s Meraux Refinery (forgot to sign in before article post). It looks like Valero intends to tie intermediate processing into its St Charles Coking refinery that is only 40 river miles away – so could become like recent pairing of COP’s Hartford-Woodriver or Holly’s Tulsa Sinclair-Sunoco combined plants.

The $325 MM purchase price Meraux Refinery gives a $2407/BPD capacity which fits within the table range of $2000-3000/BPD given by OGJ in June 2011 article (Volume 109/Issue 24) on comparison of US & EU purchases/sales in Refining industry up from distressed lows of $780/BPD but long way from merger highs in 2007 at the ~$16,000/BPD range or for new grassroots investment cost in +$25,000/BPD range. <Note see Refinery news post 6/19/11 on this>
Also good PDF on web by KBC Technology put out 7/11/11 on Refining Perspective Update that caculates some the same refinery sale/purchase values in terms of  $ per Complexity Capacity BD using Nelson Complexity & Capacity factors instead of just Capacity BD factors in OGJ June Tables.


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