Alon USA Signs Pipeline Arrangement With Centurion

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Alon USA Signs Pipeline Arrangement With Centurion

DALLAS – Centurion Pipeline L.P. has entered a 15-year arrangement with Alon USA Energy that will supply Alon's Big Spring refinery with a minimum of 21,500 barrels of crude oil per day.

In addition, it will ship 21,500 barrels per day along Centurion's reactivated pipeline, including a new 12 inch line leased from Alon. The oil from Centurion will be supplied from Midland, Texas, and will start on Aug. 14, dependant on tariff approval and filing.

"We are very pleased to add this additional flexibility to our crude supply system for the Big Spring Refinery," said Alon president and CEO Jeff Morris. In addition to Centurion's supply, the refinery also is supplied by the Amdel pipeline system. Started earlier this year, it has a current capacity of 27,000 barrels but will be increased to 40,000 by year end. That supply will come from either Midland or Nederland, Texas, he said.

The refinery's third supplier, the Mesa pipeline system, can supply the refinery's entire crude capacity. Its agreement has been extended until the end of 2009. If the Mesa pipeline cannot supply the refinery after 2009, the alternative pipelines will be able to provide its crude oil supply, according to Morris.

The agreement with Centurion can be extended for another 5 years after the original 15 by either party.

Alon is an independent refiner and marketer operating in the southwestern and south central U.S. The Big Spring refinery has a capacity of 70,000 barrels per day, which are marketed under the FINA name. Alon also operates c-stores in west Texas and New Mexico under the names 7-Eleven and FINA.