According to three sources familiar with the matter at hand, Chevron Corp has emerged as a leading contender to acquire one of Royal Dutch Shell Plc’s refineries in the U.S. Pacific Northwest.

Shell has been trying to sell its 145,000 barrel-per-day (bpd) Puget Sound refinery in Anacortes, Washington, since a year.

“As a matter of policy we don’t comment on market rumors or speculation,” said Chevron Corp’s spokesman Braden Reddall,

Shell’s spokesman Curtis Smith declined comment.

A deal is not guaranteed and analysts said competing refiners often look at other businesses to evaluate their own operations.

Puget Sound’s plant supplies fuel markets in the northwest and competes with Phillips 66, Marathon Petroleum, and BP’s plants. Last month, Shell settled a seven-year-old dispute with the U.S. Environmental Protection Agency over past air pollution violations from the facility.

Since October 2020, Shell has been strategically reducing its exposure in the refining business and said it plans on reducing its global refining portfolio to 6 sites from 14. The remaining plants will produce both fuels and high-value chemicals.

In December 2020, Shell permanently closed its 211,146-bpd refinery in Convent, Louisiana, with the COVID-19 pandemic crashing consumer demand for gasoline. That plant continues to be on sale.

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