Calumet Sells San Antonio Refinery

November 16, 2019

Naphthenic and paraffinic oils manufacturer Calumet Specialty Products Partners LP has closed on its sale of assets that include its San Antonio refinery to Starlight Relativity Acquisition Company LLC.

The deal includes a crude oil terminal and pipeline along with the Calumet Refining facility on the Alamo City’s southeast side..

Starlight agreed to pay $63 million in cash for the plant, property and equipment, plus adjustments for net working capital, inventories and post-closing amounts.

The refinery will be operated by Delaware’s Lazarus Energy Holdings LLC,

Lazarus operates a 15,000-barrel-per-day crude distillation facility with approximately 1.2 million barrels of storage capacity owned by Blue Dolphin Energy Company, another Delaware corporation, and located nearby in Nixon, Texas.

The San Antonio refinery has permitted capacity of 21 000 bpd, processing crude oil and condensate primarily from the Eagle Ford basin.

The refinery currently produces LPG, naphtha, regular and premium gasoline, commercial and military jet fuel, ultra-low sulfur diesel and atmospheric tower bottoms.

There are approximately 250 000 bbl of storage capacity at the refinery and 200 000 bbl of additional crude oil storage capacity at a crude oil terminal located in Elmendorf, Texas.

In a related transaction, Calumet entered into a settlement and release agreement with TexStar Midstream Logistics, LP settling all outstanding litigation between the two parties which will result in the release of a US$38 million balance sheet liability.