Phillip 66 announced Monday that it will convert its Alliance Refinery in Belle Chase, to a terminal facility. It will be used to store fuel instead of refining oil.
Company executives said in a statement that the extensive damage Hurricane Ida had done to the refinery proved to be too expensive to reopen.
“We made this decision after exploring several options and considering the investment needed to repair the refinery following Hurricane Ida,” said Greg Garland, Chairman and CEO of Phillips 66. “Alliance’s existing infrastructure and Gulf Coast location make it an attractive midstream asset. Phillips 66 will continue to be a major refiner with 12 facilities in the U.S. and Europe.”
The plant was put up for sale back in August when the company shift its focus to lower-carbon fuels.
“Our decision was a difficult one, and we understand it has a profound impact on our employees, contractors, and the broader Belle Chasse community,” Garland said. “We will work to help them through this transition and support them as Alliance takes on a new role in our portfolio.”
The Alliance Refinery employs approximately 500 employees and 400 contractors. The conversion is expected to take place in 2022.