Husky Energy announced today that they have agreed to acquire the Superior Refinery in Superior, Wisconsin for for $435 million US. The deal is subject to customary closing adjustments.
With this announcement, Husky also said in a press release that the investment decision to expand asphalt capacity in Lloydminster will be delayed until after 2020.
Media Relations Coordinator Kim Guttormson said in an email, “it was an attractive acquisition prospect that allows us to add asphalt production capacity for significantly less than a new development.”
She also said the acquistion, “will add immediate asphalt production, enhancing our ability to capitalize on growing asphalt demand associated with increasing infrastructure spending across North America.”
The company currently markets asphalt to the U.S. and Canada.
Guttormson goes on to say, “we still believe there is a strong economic case for a future asphalt refinery expansion in Lloydminster.”
She adds, “it will be considered again as our heavy oil production grows.”
Husky’s total downstream capacity will also increase with the acquisition to approximately 395,000 barrels per day, with 275, 000 south of the border.