Sale of Prince George refinery completed

Husky Energy has closed the sale of its Prince George Refinery to Tidewater Midstream and Infrastructure, the company said Friday.

The transaction is worth $215 million in cash, plus a closing adjustment of about $53.5 million.

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It includes a contingent payment to Husky of up to $60 million over two years, and the company has entered into a five-year offtake agreement with Tidewater for refined products from the refinery.

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.

Tidewater has said the refinery will expand its liquids value chain, and is a critical piece of infrastructure in a region in short supply of refined products.

Husky will buy 90% of the refinery's diesel and gasoline capacity for five years 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.

— with files from the Canadian Press

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