Alon Named Stalking Horse Bidder for Bakersfield Refinery

 

Dallas-based Alon USA Energy Inc. has been selected as the stalking horse bidder for the Bakersfield, Calif., refinery from Big West of California LLC, a subsidiary of Flying J Inc.  

Completion of the acquisition is subject to an auction process, bankruptcy court approval and customary regulatory approval.

The Bakersfield refinery is located in California’s Central Valley and has the capacity to refine up to 70,000 barrels per day of crude oil. The refinery is supplied by crude oil produced in the San Joaquin Valley with its products marketed in California, and is a major provider of motor fuels in central California.  

If the acquisition is successfully completed, the company anticipates using certain equipment from Bakersfield at its other refineries and connecting the Bakersfield refinery by pipeline to its refinery in Paramount, Calif., so that vacuum gas oil may be sent from Paramount to Bakersfield for further processing.  

The purchase price of the Bakersfield transaction, including the acquisition of most of Big West’s permitted Clean Fuels Project equipment, consists of $40 million in cash and an amount equal to the value of acquired inventory as of the closing date of the transaction.  

 

 

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