Alon USA Energy Inc., today finalized the purchase of the crude and unfinished products pipeline system from Kinder Morgan, Inc. known as the “Black Oil System” for a purchase price of $4.5 million. The “Black Oil” system includes approximately six miles of active and thirteen miles of inactive pipelines in the Long Beach, Calif. area.
“These pipelines provide us with enhanced flexibility with our logistics in the Long Beach area, as well as support the expansion of our California refinery system to 90,000 barrels per day planned for next year,” said Jeff Morris, president and CEO of Alon. “Logistics are critical in any environment, but they are especially valuable in densely populated areas such as the Los Angeles basin. The acquired pipeline system will allow us to better optimize our current pipeline network along with giving us direct access to marine terminals and refineries in the Los Angeles and Long Beach Port area.
“This is one more step in our continued progress to expand and improve the facilities we purchased last year. We have already increased throughput from our combined Paramount operation to almost 70,000 bpd and look forward to continuing to increase fuels and asphalt production for our West Coast customers.”
Alon also announced that it has completed the acquisition of Skinny’s Inc. for about $70 million. Abilene, Texas-based Skinny’s owns and operates 102 FINA branded stores in Central and West Texas.
Dallas-based Alon USA is an independent refiner and marketer that owns and operates four refineries in Texas, California and Oregon, with a throughput capacity of approximately 170,000 barrels per day. Alon markets gasoline and diesel products under the FINA brand name and operates more than 300 convenience stores in West Texas and New Mexico under the 7-Eleven and FINA brands.
