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Alon USA Acquires Product Pipeline System

DALLAS -- Alon USA, the Dallas-based operator of Southwest Convenience Stores, a chain with 170 stores operated primarily in West Texas and New Mexico markets, has purchased the 380-mile Trust and River fuel product pipelines from the AtoFina Pension Trust. These pipelines connect Alon's Big Spring pipeline with its product terminals in Abilene, Texas and Wichita Falls, Texas. In addition, these pipelines connect to Magellan's mid-continent fuels pipeline system through Alon's terminal in Duncan, Okla.

The pipeline system has been operated by Alon and its predecessor, Fina, for 20 years under long-term lease arrangements but now reverts to Alon's control. This purchase adds these pipelines to the Amdel crude system, which connects Port Arthur, Texas, with Midland, Texas, and the Big Spring Refinery, plus the FinTex product system, which provides access to El Paso, Texas. This purchase will provide Alon complete control of this private pipeline system.

"This is an important addition to Alon's physically integrated refining and marketing system," said Jeff Morris, Alon USA president and CEO. "We are now fully integrated from our refinery in Big Spring via this pipeline system to our Southwest Convenience Stores operation in Wichita Falls in addition to other major independent convenience store operators using the Fina brand throughout West Texas," he said.

Morris added that the company anticipates the move will be the first of several additions to the pipeline and terminal systems, which will further physically integrate its refinery throughout the Southwest to better serve its customers. "This system will be further utilized following the expansion of our Big Spring Refinery in the first quarter of 2005," said Morris.
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