DALLAS -- Alon USA Energy Inc. said 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 13 miles of inactive pipelines in the Long Beach, Calif., area.
Jeff Morris, president and CEO of Alon, said, 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 [image-nocss] to 90,000 barrels per day 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.
He added, 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 fuelsproduction for our West Coast customers.
Alon USA, Dallas, is an independent refiner and marketer of petroleum products, operating primarily in the South Central, southwestern and western regions of the United States. The company owns and operates four sour and heavy crude oil refineries in Texas, California and Oregon, with an aggregate crude oil throughput capacity of approximately 170,000 barrels per day. Alon markets gasoline and diesel products under the FINA brand. It also operates more than 300 convenience stores in West Texas and New Mexico under the 7-Eleven and FINA brands and supplies motor fuels to these stores from its Big Spring, Texas, refinery. In addition, Alon supplies approximately 900 additional FINA-branded locations.Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.