Suncor Energy Inc. has purchased Valero Energy Corp.’s Commerce City oil refinery, placing Colorado’s only two refineries under single ownership.
Suncor paid $45 million for the refinery and its inventory. The Valero refinery is across Brighton Boulevard from Suncor’s refinery.
Combined, the two refineries provide about 37 percent of Colorado’s gasoline and diesel fuel.
Colorado consumers won’t be harmed by the consolidation because out-of-state refineries that supply the state help keep wholesale prices competitive, said Mike Ashar, executive vice president of refining and marketing for Suncor Energy USA.
“Yes, two players have merged, but there are a lot of other big players to serve the Colorado market,” Ashar said.
The other refineries that ship to Colorado are in southern Wyoming, Kansas, Oklahoma and the Texas panhandle, he said.
No federal regulatory approval of the deal is required because its value falls below the $53 million minimum transaction cost that triggers review by the Federal Trade Commission, Ashar said.
The deal may be good for Colorado consumers because it ensures the continued operation of both refineries, said Stan Dempsey Jr. of the Colorado Petroleum Association.
“It guarantees the future of the Valero refinery,” he said. “That’s important because it’s really hard to run a small refinery that is inland, far from the coast.”
Calgary, Alberta-based Suncor plans to combine some functions from its 62,000 barrel-a-day refinery with Valero’s 30,000-barrel facility.
For example, some of Valero’s refining equipment produces hydrogen as a byproduct, which Suncor can use at its refinery to remove sulfur, a pollutant, from fuel.
In addition, Suncor’s rail-car loading facility is operating at capacity, while Valero’s has excess capacity.
“Clearly, we will see synergies that we can take advantage of,” Ashar said.
Suncor in 2003 bought the former Conoco refinery in Commerce City and 43 Phillips 66 gas stations in Colorado in a $150 million deal.
No changes are expected among Valero’s 140 employees or the 260 workers at the Suncor refinery, Ashar said.
Staff writer Steve Raabe can be reached at 303-820-1948 or sraabe@denverpost.com.
