Adds and background on refinery
Oct 6 (Reuters) – Canada-based oil refinery operator Irving Oil on Tuesday said it has terminated an agreement for the purchase of North Atlantic Refinery Limited, the company said in a statement on its website.
Irving had agreed to buy the owner of the idled 135,000 barrels per day Come-by-Chance refinery in Newfoundland, for an undisclosed price in May.
According to industry sources, Irving walked away from the purchase and share agreement shortly before it was set to close in mid-October.
“North Atlantic is actively looking for alternate buyer, but the market is very challenging,” said a source familiar with the matter.
Workers are expected to be told at an all-staff meeting on Tuesday morning.
Refining margins have been weighed down by lower processing rates due to an oversupply of distillate stocks, which include jet fuel. The crack spread – the difference between