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SCOTTSDALE, Ariz. -- Giant Industries Inc. has entered into a purchase and sale agreement to acquire an idle crude oil pipeline system that originates near Jal, N.M., and is connected to a company-owned pipeline network that directly supplies crude oil to the Bloomfield and Ciniza refineries.
Fred Holliger, Giant's CEO, said, "We are very excited about this opportunity, as it addresses the strategic priority we have had over the last several years to access supplemental crude supplies for our two New Mexico refineries. When operational, the pipeline will have sufficient crude oil transportation capacity to allow us to again operate both refineries at maximum rates."
This acquisition is subject to normal due diligence, and other conditions of closing. It is anticipated that the transaction will close in the third quarter of 2005. Startup of the pipeline is subject to, among other things, a final engineering evaluation of the system. It is currently anticipated that the pipeline will become operational in 12 to 18 months from the closing.
Giant Industries, headquartered in Scottsdale, is a refiner and marketer of petroleum products. Giant owns and operates one Virginia and two New Mexico crude oil refineries, a crude oil gathering pipeline system based in Bloomfield, N.M., which services the New Mexico refineries, finished products distribution terminals in Albuquerque, N.M., and Flagstaff, Ariz., a fleet of crude oil and finished product truck transports, and a chain of retail service station/convenience stores in New Mexico, Colorado and Arizona. Giant is also the parent company of Phoenix Fuel Co. Inc., an Arizona wholesale petroleum products distributor.