Irving Oil has announced divestiture of its 25% share in Saint John terminal to Repsol SA. Repsol SA is a Spanish energy and petrochemical company based in Madrid.
According to a news release, both parties have been working together to finalize the sale of the liquefied natural gas in east St. John.
The report said:
“Irving Oil extends its best wishes to Repsol for success in the future. Confidentiality provisions prohibit Irving Oil from commenting further at this time.”
Courtney Jones, Canaport LNG’s general manager and a Repsol director, hasn’t responded to a request for comment about what impact the deal will have on local operations or jobs.
Irving Oil corporate communications manager Candice MacLean also didn’t answer this question.
The industry consultant Andrew Lipow said that pandemics and “stretching companies’ balance sheets” have motivated such divestitures.
“We’ve seen lots of bankruptcies occur on the production end and consolidation in the industry, especially as the world is moving away from fossil fuels into renewable fuels. The collapse in demand for motor fuels, jet fuel and other refined products, together with extreme market volatility, serious negative impacts to refining margins and high levels of uncertainty about the depth and duration of the downturn in our economies, continue to create prolonged and significant challenges.”
He also stated that Irving Oil’s decision is not pandemic-related. Lipow concluded:
“They might just be looking to strengthen that presence or use the money to develop a strategy for renewable fuels as we go forward.”