Prax Group completes acquisition of UK’s Lindsey refinery

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UK-based fuel trading and marketing Prax Group said March 1 it has completed the acquisition of the Lindsey refinery and associated logistic on the east coast of .

Last July, Total agreed to sell the 5.4 million mt/year (108,000 b/d) refinery to Prax Group to focus on its integrated downstream assets, with the coronavirus pandemic adding to uncertainty over long-term demand for fuel.

Apart from the refinery, the acquisition includes the Finaline , which links the plant with the Buncefield fuel terminal, and the Killinghome loading terminal, as well as in operations, Prax Group said. These additional stakes comprise Hertfordshire Oil Storage Ltd (60%), Associated Petroleum Terminals Ltd (50%), Crude Oil Terminals Ltd (50%), Humber Oil Terminals Trustee Ltd (50%) and Warwickshire Oil Storage Ltd (50%).

Prax Group CEO Sanjeev Kumar said the deal provided an opportunity to integrate the refinery and associated product flows “into the company’s UK distribution and footprint, which operates under the Harvest Energy brand.”

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“This will create unique opportunities for synergies with existing Prax-owned assets, as well as demonstrating our ongoing commitment to building a reliable chain to meet the needs of our customers for many years to come,” he said.

Total first began looking to sell the Lindsey refinery in 2010 but shelved the plans two years later after failing to find a buyer.

In 2016, the plant’s nameplate was halved from 220,000 b/d after one of its two crude distillation units was shut down.

Crude from Trafigura

Prax Group also said it had completed “an exclusive crude oil and feedstocks supply arrangement with trading company Trafigura, a market leader in the global commodities industry”.

Under the arrangement, Prax will buy crude oil and feedstocks from Trafigura “for all of its requirements” for the Lindsey refinery.

“Trafigura will use its extensive global reach in international oil markets to source the optimal range of crude oils and feedstocks for the refinery,” Prax Group said, adding that “other details relating to the transaction remain confidential”.

According to CEO Kumar, the arrangement with Trafigura “will provide operational and planning flexibility, helping us to continue to deliver an excellent level of service to our customers”.

Author

Elza Turner

Editor

Daniel Lalor

Commodity

Oil

Source: Platts

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