HF Sinclair plans to separate its Lubricants & Specialties business into an independent publicly traded company while retiring the former Petro-Canada Lubricants base oil refinery in Mississauga, Ont.

The separation, expected to be completed within 12 to 18 months, is part of a broader corporate restructuring and remains subject to regulatory approvals and final approval by the company’s board.

The Mississauga refinery is expected to cease operations during 2027. However, HF Sinclair said the business will maintain a significant presence in Ontario, including its research and development laboratory, lubricant blending and packaging operations, and supply chain, logistics and commercial functions.

The lubricants business traces its roots to Petro-Canada Lubricants, which HollyFrontier acquired from Suncor in 2017. HollyFrontier became HF Sinclair following its 2022 merger with Holly Energy Partners.

HF Sinclair said the independent lubricants company will source base oils through new supply agreements with two global manufacturers while continuing to receive Group I and specialty products from its Tulsa refinery, allowing it to continue offering Group I, II and III base oils.

“This announcement marks an important step in HF Sinclair’s portfolio optimization strategy,” said Franklin Myers, chairman and CEO. “The separation will unlock value by creating two focused businesses with enhanced flexibility to pursue their respective strategic and capital priorities.”

Following the separation, HF Sinclair will focus on its refining, midstream, marketing and renewable diesel businesses, while the standalone Lubricants & Specialties company will concentrate on lubricant technology, established brands and its distribution network.