DALLAS -- Alon USA Energy Inc. and Petro Stopping Centers LP have inked an agreement to form a joint venture for constructing and operating a new signature Petro Stopping Center in Midland, Texas.
Alon USA and Petro will jointly design and construct the travel center. The complex will provide features including an Iron Skillet restaurant, a Petro:Lube truck service center and a Petro Travel Store. In addition, the site will provide overnight truck parking and a full range of driver amenities.
When the new facility opens, projected [image-nocss] to occur in the first half of 2007, Petro will be responsible for primary operation of the Travel Center. Alon USA will be responsible for the fuel supply and will also operate a 7-Eleven convenience store within the complex, featuring Fina-branded fuels.
According to Jeff Morris, president and CEO of Alon USA, the new facility provides another opportunity to create an end-to-end connection between the Big Spring (Texas) Refinery and fuel customers. Alon USA will supply fuel to this site via pipeline from Big Spring.
We're thrilled to join with a partner of the quality of Petro, said Morris. This site will be physically integrated with our Big Spring refinery and will provide a reliable and highly visible outlet for a significant portion of our diesel fuel production. Most importantly, we're very happy to provide new jobs and economic development in our home in West Texas.
In announcing plans for the new travel center, Petro Chairman and CEO Jack Cardwell commented on the strategic location of the site. The new facility will be a destination for drivers traveling on Interstate 20 between El Paso and Dallas, said Cardwell. Petro has an extremely strong customer base in Texas and the addition of this site in Midland fits our network perfectly.
The travel center will be the initial development on a 100-acre site, which is expected to include additional quick-service restaurants and retail outlets. The companies are also considering the development of a hotel on the site. The expect that operations on this site will initially employ up to 200 people and grow to become one of the major employment locations in Midland.
After finalizing all permits, the travel center's design and relationships with the City of Midland, it is expected that construction will begin in 2006.
Petro Stopping Centers, El Paso, Texas, has 64 locations nationwide.
Alon USA, Dallas, is an independent refiner and marketer of petroleum products, operating primarily in the Southwest and South Central regions of the United States. The company owns and operates a sour crude oil refinery in Big Spring with a crude oil throughput capacity of 70,000 barrels per day. It markets gasoline and diesel products under the FINA brand and operates c-stores in West Texas and New Mexico under the 7-Eleven and FINA brands and supplies motor fuels to these stores from the Big Spring refinery.
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