Phillips Petroleum Completes Sale of Propane Marketing Subsidiary
Jessica Danker Journal Record Reporter, THE JOURNAL RECORD
Phillips Petroleum Co. Tuesday completed the sale of its retail propane marketing subsidiary, Phillips 66 Propane Co., to AmeriGas Propane L.P. for an undisclosed amount.
Phillips' wholesale propane subsidiary, PhilGas, is not affected by the sale and continues to be part of the company's marketing strategy.
Phillips decided to sell the retail propane marketing subsidiary in order "to better focus our motor fuel marketing effort," said Rob Phillips, company spokesman.
Retail propane sales account for about 3 percent, or 12 million gallons, of Phillips' total annual propane sales.
"We formed Phillips 66 Propane Co. in 1990 for the purpose of entering the alternative fuel market according to the mandates of the Federal Clean Air Act.
"We have found that reformulated gasolines, rather than propane have become the alternative fuels of choice for motorists, and that has left little growth and marginal opportunities for us on the retail end of the propane business," he said.
Included in the sale are five bulk-storage plants, 28 propane delivery trucks and 11 satellite-storage facilities in Colorado, Wyoming and Missouri.
"We anticipate that most of our (65) employees will be retained by AmeriGas," Phillips said.
AmeriGas has operations in some of the same areas as the recently purchased assets of the Phillips retail propane subsidiary. …