Suncor buys Valero refinery in Colorado

Allen Baker

Suncor Energy’s U.S. subsidiary has bought a small refinery in Colorado adjacent to a bigger facility the Canadian oil sands company purchased from ConocoPhillips in 2003. The deal was announced June 1.

Suncor Energy (U.S.A.) paid $30 million for the Valero refinery that can process 30,000 barrels per day. That operation will be integrated with the one next door for a combined refining capacity of about 90,000 bpd. The plants are six miles northeast of downtown Denver in Commerce City.

“These two plants belong together … because they are much stronger and have a much brighter future together than either has individually,” noted Valero’s chairman and CEO, Bill Greehey. His firm is in the process of buying fellow refiner Premcor for $8.7 billion in cash and stock. That deal, if it goes through, will make Valero the largest U.S. refiner. For Suncor, the deal adds to its eventual ability to process increased production from Alberta oil sands operations, though the company has assured local crude oil suppliers currently providing feedstock to the Valero refinery that they won’t be affected by the transaction. Suncor also has a refinery in southern Ontario.