Chevron agrees to buy Texas refinery for $350 million

- Refinery can process 110,000 barrels a day of light crude and has storage capacity of 5.1 million barrels of oil products

U.S. energy major Chevron announced its agreement to buy a refinery system from Brazilian multinational corporation Petrobras for $350 million.

Chevron said in a statement Wednesday that it signed the agreement with Petrobras to acquire all the outstanding shares and equity interests of Pasadena Refining System, which includes a refinery in Texas and Houston-based company PRSI Trading LLC.

The refinery in Pasadena, Texas has a capacity to process approximately 110,000 barrels per day of light crude, and a tank farm with a storage capacity of 5.1 million barrels of crude oil and refined products.

'This expansion of our Gulf Coast refining system enables Chevron to process more domestic light crude, supply a portion of our retail market in Texas and Louisiana with Chevron-produced products, and realize synergies through coordination with our refinery in Pascagoula,' Pierre Breber, executive vice president of Chevron Downstream & Chemicals, said in the statement.

Chevron already has refineries in Pascagoula in the state of Mississippi, two facilities in El Segundo and Richmond in the state of California; and one in Salt Lake City in the state of Utah.

The agreement will be completed after regulatory approvals, the statement said.

By Ovunc Kutlu

Anadolu Agency

energy@aa.com.tr