Valero Buys Kaneb Pipeline Partners
Couche-Tard Continues Growth
Shell Bakersfield Refinery May Stay Open
Thieves Want Cash, Cigars in Robbery
Clean Energy Acquires HPA Rights

VALERO BUYS KANEB PIPELINE PARTNERS

SAN ANTONIO, TX. — Valero has signed a deal to acquire Kaneb Pipe Line Partners for approximately $2.8 billion.

With the completion of the agreement Valero will become the largest terminal operator in the United States and the second largest petroleum pipeline operator in the United States.

Under the terms of the deal, Kaneb Services and Kaneb Partners will become wholly owned subsidiaries of Valero L.P. and will operate under the Valero name and under the direction of Valero's current leadership team.

Among the assets acquired are approximately 9,700 miles of pipeline comprised of approximately 6,900 miles of refined product pipelines, 800 miles of crude oil pipelines and a 2,000-mile anhydrous ammonia pipeline.

Following the completion of the deal, Valero will own 101 terminal facilities located in 30 states as well as in Canada, Mexico, the Netherlands Antilles, Australia, New Zealand and the United Kingdom and four crude oil storage tank facilities.

When Kaneb's holdings have been consolidated, Valero will have approximately 85 million barrels of fuel storage capacity.

"The combined entity will be in a much better strategic position with stronger, more diversified operations, increased earnings stability and a terrific platform for future growth," said Curt Anastasio, president and chief executive officer of Valero, announcing the deal. He added, "Valero Energy is the largest independent refining company in the United States and is committed to further expanding its operations."

The sale is expected to close in the first quarter of 2005 and is subject to stockholder and government approval.

COUCHE-TARD CONTINUES GROWTH

PHOENIX, AZ. — Canadian c-store company Alimentation Couche-Tard is continuing its expansion in the West.

Earlier in the Fall, the company signed a deal to purchase 22 stations in the greater Phoenix area from Shell Oil for $33 million. The sites, which were branded both Shell and Texaco, are now company-operated by Couche-Tard and the majority are being converted to its Circle K brand and image.

Couche-Tard has announced that it plans to continue its expansion in the U.S. with plans to build or buy over 100 stations by the end of 2005 and convert them to the Circle K brand.

Company officials said they also plan to add QSRs to a number of their locations over the course of the next year in order to increase revenues.

Couche-Tard is also aggressively rebranding its Circle K stations in the West — especially in the Phoenix metro area — from the Union 76 brand. Although Couche-Tard acquired the 76 branded stations last year, many continued to sport that brand until recent weeks.

Couche-Tard acquired the Circle K brand as well as hundreds of locations from ConocoPhillips in 2003.

While the majority of its stations now carry the Circle K brand at the fueling positions as well as the c-store, Couche-Tard is rebranding some of its sites in the West to Shell.

The adoption of the Shell brand comes as a surprise from the company which originally said they would utilize the Circle K brand as its only retail brand in the United States.

SHELL BAKERSFIELD REFINERY MAY STAY OPEN

BAKERSFIELD, CA. — Shell Oil Company has agreed to keep its Bakersfield refinery open until March 31 to allow more time for negotiations with potential buyers.

As part of the agreement, Shell said it would keep the refinery operating if the facility received a waiver on its emissions limits through the end of the first quarter 2005. In exchange for the Bakersfield waiver, Shell said it would meet emissions reductions requirements on other facilities more than three years earlier than mandated.

The Bakersfield emissions limits in question were set in 2001 as part of a consent agreement between Shell, the Federal Environmental Protection Agency, and the Justice Department. The waiver must be approved by a Federal judge in Texas to become effective.

Shell officials also stated that they would shutter the refinery on March 31, 2005 if they were unable to close the sale on the facility by that date.

"We are pleased to be in a position to extend operations at the Bakersfield facility," said Lynn Laverty Elsenhans, president of Shell Oil Products U.S. in an official statement. "Extending operations at the Bakersfield plant would help with transition issue should a new owner emerge from the sales process."

THIEVES WANT CASH, CIGARS IN ROBBERY

ROLANDO, CA. — A pair of thieves, demanding cash and cigars, robbed the Arco am/pm located at 6301 El Cajon Blvd. here.

According to local police reports, the two men entered the convenience store shortly before 5:00 a.m. One thief grabbed the clerk working alone at the station while the other brandished a gun making demand.

The two thieves escaped the station with an undisclosed amount of cash, including the clerk's own money.

CLEAN ENERGY ACQUIRES HPA RIGHTS

SACRAMENTO, CA. — Clean Energy, Inc. has acquired of an international exclusive license from HPA, LLC for a turnkey hydrogen delivery system for internal combustion engines.

Clean Energy, a Nevada corporation, says it will use this license in the next two years to complete a market-ready conversion system for a select group of American vehicle models for use in business and government fleets.

The hydrogen is delivered into an existing internal combustion engine by an innovative hydrogen injector system. Compressed hydrogen is stored in proven government certified pressurized hydrogen storage tanks onboard the vehicle.

The company says, "Upon the completion of the market approved system, potential customers will be able to drive on clean burning hydrogen without the need to purchase fuel cell systems or replace their existing engines. Existing engines will be modified to operate using 100% hydrogen and air."

Originally published in the December 2004 issue of O&A Marketing News.
Copyright 2004 by KAL Publications Inc.