One of Minnesota’s two oil refineries is changing hands. On November 3, Marathon Petroleum announced it is selling the St. Paul Park Refinery to CVR Energy, a refining company based in Sugar Land, Texas. The sale is part of a $4.2 billion deal that also includes Marathon’s refinery in Mandan, North Dakota, and related assets.
The companies expect the deal to close by the end of 2026. For the Twin Cities east metro, this isn’t a distant corporate headline. The refinery sits in St. Paul Park in Washington County and has been part of the local landscape for more than 85 years.
What’s Being Sold
The St. Paul Park Refinery was built in 1939 and employs about 375 full-time workers. It can process 105,000 barrels of crude oil per day, turning it into:
- Gasoline
- Distillates
- Asphalt
- Propane
- Heavy fuel oil
- Other products
The deal also includes a marketing channel that supplies up to 590 branded locations across the Upper Midwest and Northern Great Plains. Marathon will receive $3.45 billion for the refining assets, and its partnership MPLX will receive $750 million for related midstream assets.
Who Is CVR Energy?
CVR Energy currently operates two refineries, one in Kansas and one in Oklahoma. Adding St. Paul Park and Mandan gives the company its first presence in the Upper Midwest and grows its refining capacity by about 85%.
CVR’s controlling shareholder is a group of businesses owned by billionaire investor Carl Icahn, which is committing $500 million in equity toward the purchase. Trading firm Trafigura is investing another $800 million and will become the exclusive crude oil supplier to the acquired refineries. CVR President and CEO Dane Neumann said the company looks forward to welcoming the employees at both facilities.
Marathon, for its part, plans to reinvest most of the proceeds on the Gulf Coast.
Why It Matters to the East Metro
This refinery has changed hands before. Marathon owned it from 1998 to 2010, then bought it back in 2018. Every ownership change raises the same questions for neighbors: who’s running the plant, how many people will work there, and what the new owner plans to invest.
The announcement doesn’t spell out staffing plans after closing, so that’s the detail to watch. Those 375 full-time jobs matter to the families who hold them and to the businesses around the plant in St. Paul Park and Cottage Grove.
It’s also a reminder of how few refineries Minnesota has. The only other one is Flint Hills Resources in Rosemount. With the St. Paul Park deal covering a marketing network of up to 590 branded locations, decisions made by the new owner could reach well beyond city limits.
For more on what’s happening around the east metro, check out [INTERNAL LINK: east metro news blog category or Washington County community guide].
What Happens Next
The deal still has to close, which the companies expect by year end. Until then, Marathon continues to own the refinery. We’ll be watching for updates on employment, investment plans, and any changes on the ground in St. Paul Park.
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