Murphy Oil Signs Agreement To Purchase Panda Ethanol Hereford Plant

It was reported in late July that Murphy Oil had shown some interest in buying the former Panda Ethanol plant in Hereford, TX. The Panda Ethanol subsidiary that owned the plant filed for bankruptcy in January 2009 and the 100 million gallon per year Hereford ethanol plant was never completed.

On August 6, the HerefordBRAND reported that Murphy Oil had signed an agreement to buy the facility. No details were given on purchase price or on when the sale is expected to close. The company did say that they plan to spend a minimum of $25 million to finish the facility and that they expect to have the facility operational in the first quarter of 2011.