Alon USA Purchases Additional Pipelines in California

abarrelfullabarrelfull wrote on 20 May 2014 12:51

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July 2 2007

Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced that it has 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, California area.

Jeff Morris, President and CEO of Alon, commented, "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 ("bpd") planned for next year. 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."

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