Phillips 66 to Acquire UK Refinery Assets, Bolstering Humber Hub
Deal for former Lindsey Oil Refinery assets aims to enhance UK energy security and integrate renewable and traditional fuel operations.
Phillips 66 (NYSE: PSX) will acquire the assets of the recently shuttered Lindsey Oil Refinery in the U.K., a strategic move to enhance its nearby Humber Refinery operations and reinforce the nation's energy security. The company will integrate the site's infrastructure rather than restart standalone refining, optimizing its footprint in a consolidating European market.
Shares of the Houston-based energy giant rose modestly on the news, closing up 1.19% at $130.57 in the latest trading session. The deal follows the liquidation of Prax Lindsey Oil Refinery Limited in mid-2025, a closure that reduced the U.K.'s refining capacity and increased its reliance on imported fuels.
In a statement, Phillips 66 confirmed it will not resume crude oil processing at the Lindsey site, which it deemed unviable at its current scale. Instead, the company plans to leverage Lindsey's extensive storage and logistics infrastructure to augment its Humber Refinery, one of the most complex and sophisticated refineries in Europe. This integration is expected to create significant operational synergies and improve the efficiency of fuel supply to customers across the U.K.
“This is a significant step in our continued investment to support the UK’s energy security and long-term-growth,” a Phillips 66 representative stated, framing the acquisition as a key part of its regional strategy. The move is designed to safeguard jobs and pave the way for future investments in both the traditional and low-carbon energy sectors.
The acquisition bolsters a critical piece of U.K. energy infrastructure. The Phillips 66 Humber Refinery is a vital national asset, processing over 220,000 barrels of crude oil a day and supplying around 15% of U.K. fuel demand. The refinery has also become a cornerstone of the company’s push into lower-carbon energy, producing specialty coke for electric vehicle batteries and pioneering the production of sustainable aviation fuel (SAF).
By absorbing the Lindsey assets, Phillips 66 can fortify its Humber operations, which is central to the ‘Refinery of the Future’ vision for the region. This strategy focuses on adapting existing industrial assets for a lower-carbon economy, aligning with the U.K.'s broader decarbonization goals.
The transaction comes as Phillips 66, with a market capitalization of nearly $53 billion, navigates a challenging period marked by a 61% year-over-year decline in quarterly earnings. This strategic, bolt-on acquisition appears aimed at driving efficiency and solidifying its competitive position in a core market without the capital-intensive risk of building new facilities. The move was received favorably by analysts, who have an average price target of $148.85 on the stock.
The deal is subject to customary closing conditions and regulatory approvals. The successful bid was confirmed by the U.K. government's Official Receiver and the special managers from FTI Consulting LLP who have been overseeing the site's liquidation.