October 4, 2007 at 4:39 pm #3930
The government stopped fighting the purchase by Texas-based Western Refining.
CHRIS FLORES <mailto:email@example.com> | 757-247-4738 , October 4, 2007 <http://ad.doubleclick.net/jump/trb.dailypress/biz;ptype=s;slug=dp-now-yorktownrefinery_1004;rg=ur;ref=newsyahoocom;pos=1;sz=88×31;tile=2;ord=54522379?>
YORK – The federal government officially backed off Wednesday on fighting the deal that led to the acquisition of the Yorktown Refinery by a new owner.
The deal for El Paso, Texas-based Western Refining to buy Yorktown Refinery parent company Giant Industries was first announced in August 2006. But it was delayed by fires at Yorktown that reduced the price, and then a challenge by the Federal Trade Commission on anti-trust grounds.
The FTC allowed huge mergers for more than a decade before challenging the El Paso deal. The FTC said it would be anti-competitive in Albuquerque, N.M., the other market where Giant owned a refinery.
A judge sided with the companies in May, allowing the deal to be finalized. The FTC had still been holding out the possibility of challenging the deal on appeal, but voted 3-2 to back away because it wasn’t a wise use of its resources.
October 4, 2007 at 4:42 pm #7246
The Western acquisition of Giant Refinery at Yorktown has cleared FTC challenge (that was mostly around the other Giant refinery in New Mexico) and is going ahead. The Yorktown coker will become Westerns second coking refinery.
Background = The Yorktown refinery was built in 1956 by Amoco which merged with BP and was sold to Giant in 2002 (becoming the largest of its 3 refineries and the only one with a coker). Giant had planned an expansion for Yorktown and use some of the 120 undeveloped acres surrounding the refinery (been on market for years but no one wanted buy it) but impacts of Katrina & Rita caused Giant to reconsider it.
Western made purchase offer but a fire at Giant caused re-negotiation of price and then the FTC put in anti-trust challenge mentioned in this article because of New Mexico dominance by El Paso based Western Refinery in that region.
So the Yorktown Refinery will have a new owner – but the potential for an expansion at the 62 MBD refinery & revamp for Canadian crude will likely re-surface and make the all the current Anode coke purchasers sweat that the petcoke production will be shifted to fuel grade coke.
October 18, 2007 at 10:17 am #7220
Where is Western’ other coking refinery?
October 18, 2007 at 1:15 pm #7219
Western now owns El Paso Refinery and at one time there used to be a coker, back when it was owned by Chevron, but was shutdown long before it became Western’s (~June 2003 purchase). Phil Fisher used to handle Chevrons petcoke sales for Utah/El Paso & Pt Arthur cokes and could give details – he no longer with Chevron & think his website may be petcokeconsulting.com.
But since coker is gone & only old guys remember it – technically doesnt count. When Refinery was El Paso Refining (LLC spin-off) – a new coker was being looked at / in planning stage but fell through and refinery was sold.
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