By OGJ editors
HOUSTON, May 3 -- Alon USA Energy Inc. plans to combine two California heavy-crude refineries it is acquiring in separate transactions.
It has signed definitive agreements to buy most assets of Paramount Petroleum Corp., Paramount, Calif., and Edgington Oil Co., of nearby Long Beach.
Alon will pay $307 million and assume about $100 million in net debt to acquire Paramount's refining assets, which include a 54,000 b/d refinery at Paramount and a 12,000 b/d heavy crude refinery in Portland, Ore. It also will acquire from Paramount seven asphalt terminals in the US West and a 50% interest in Wright Asphalt Products Co., Channelview, Tex.
Alon will pay $52 million plus inventory value for Edgington, which operates a topping refinery with nameplate capacity of 40,000 b/d that can process as much as 24,000 b/d of heavy crude.
Alon says it will run heavy crude in the Edgington facility and merge it with Paramount's California unit into a 78,000-b/d refinery. The Paramount refinery recently was upgraded to produce gasoline blendstocks and diesel fuel meeting California air-quality specifications.
Alon USA, a subsidiary of Alon Israel Oil Co. Ltd., operates a 70,000 b/d sour crude refinery at Big Spring, Tex.
