August 2022 Issue Highlights

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Christensen Acquires United Oil of Boise
Reladyne Acquires Orange Line Oil Co.
KAG Consolidates Energy Transporters Into KAG Energy
VRD Plans Renewable Diesel Refinery in Nevada
SoCalGas Looking to Hydrogen as Motor Fuel

CHRISTIANSEN ACQUIRES UNITED OIL OF BOISE

RICHLAND, WA. — Christensen Inc., based here, has acquired United Oil of Boise, ID. The purchase price for the distributorship, which was sold in July, was not announced.

Founded in Twin Falls, ID., in 1939, United Oil began as a service station with delivery to local farms and expanded to include tanker transportation, home heating oil delivery, retail service stations, cardlocks, and wholesale branded sales. United Oil has also expanded through its own acquisitions, purchasing American Energy/RV Oil, BriCo of Idaho, K-Energy, and Black Oil all since 2000. The business was led by the Franklin Family with Robert Franklin and Holly Claiborn at the helm.

"The Franklin family has built a great organization with wonderful people that truly care about each other and their customers," said Tony Christensen, CEO of Christensen, Inc., Richland, WA. "The addition of United Oil and its entities support the Christensen growth strategy by strengthening our distribution network in one of the fastest growing markets in the country.

"We are excited to welcome the United Oil team and look forward to providing our quality products and differentiated services to customers in Idaho and Nevada."

Christiansen officials estimate with the completion of the acquisition, Christensen will add an additional 3,000 customers to its client list.

Robert Franklin, co-owner of United Oil said, "We've valued our customers and employees, who have felt like an extended part of our family over the years. This is an exciting opportunity for everyone involved, as we know our customers and employees are in good hands and will continue to be the priority."

"This acquisition builds on the strong momentum Christensen has generated over the course of 2021 with the acquisition of two other distributors," stated Christiansen officials. "As Christensen expands its footprint into Idaho, it will allow the company to continue to accelerate its long-term, sustainable growth plans."

Founded in 1935, Christensen is family-owned and operated and employs over 500 people across the Pacific Northwest and nationwide.

RELADYNE ACQUIRES ORANGE LINE OIL CO.

POMONA, CA. —Orange Line Oil Company has been acquired by Cincinnati, OH.-based RelaDyne in a deal announced in July. The purchase price was not disclosed.

Founded in 1970 by John and Louise Strasser, Orange Line Oil Company is one of the largest bulk motor oil distributors in Southern California with a territory spanning from Paso Robles, CA., south to the Mexican border. Orange Line's brands included Castrol, Motorcraft, Peak, Phillips 66, Total, and ENEOS as well as RelaDyne's brands, DuraMAX and Drydene.

"The acquisition of Orange Line Oil Company is a tremendous opportunity for RelaDyne's West Region," stated Larry Stoddard, president and CEO of RelaDyne. "We are thrilled to welcome Orange Line Oil Company to the RelaDyne family. Effective immediately, we will begin to offer new products and services to Orange Line's existing customer base, while supporting the remarkable customer service Orange Line has provided to the market for decades."

"As we looked out into the future we made the strategic decision to find a likeminded partner to take Orange Line to the next level," said Scott Tredinnik, who had been serving as Orange Line Oil's president and CEO. "Our priority was finding an organization that had the capabilities to expand our distribution and service reach but, more importantly, was finding a partner that aligned with our values and one that we knew could provide growth opportunities for our people and our customers that we could not on our own."

"This acquisition represents the third investment in the state of California in less than two years, and continues RelaDyne's execution of our West Region expansion strategy," said David Schumacher, RelaDyne VP of Business Development.

Reladyne acquired Alexis Oil and Global Industrial Solutions of Corona, CA., in July 2021 and Nick Barbieri Trucking and sister companies Redwood Coast Fuels and North Bay Petroleum of Ukiah, CA., in August 2020.

"Our relationship with Orange Line Oil Company and their leadership team dates back many years and was built on trust and transparency," continued Schumacher. "The combination provides another avenue for RelaDyne to continue to invest in sustainable growth markets while expanding our existing distribution and reliability services capabilities in one of the largest markets in the country."

KAG CONSOLIDATES ENERGY TRANSPORTERS INTO KAG ENERGY

NORTH CANTON, OH, —The Kenan Advantage Group, Inc. is consolidating all of its fuel subsidiaries into KAG Energy, LLC. This will make KAG Energy the largest transporter of petroleum-based products in the country.

Kenan Transport, Advantage Tank Lines, Klemm Tank Lines, Petro Chemical Transport, and KAG West will now be operating under the KAG Energy name and brand.

With the combination, KAG Energy will transport over 30 different product segments which support the energy services sector including asphalt, butane, propane, plastics, transmix, and crude oil.

"The transition will take time," stated Jason Platt, executive vice president of KAG Energy, "but will allow us to streamline our operations, better capitalize on our extensive U.S. footprint with our 4,000 professional drivers and independent contractors, capture best practices of all operating groups and, most importantly, continue to provide our customers with the first-class service they have come to expect from KAG."

"Based on our size and geographical presence, we can better utilize our professional drivers and independent contractors in our fleet," added Platt. "It better positions us for growth and more accurately reflects the services our valuable team members and contractors are performing."

VRD PLANS RENEWABLE DIESEL REFINERY IN NEVADA

LAS VEGAS, NV. —Vegas Renewable Diesel Inc. (VRD) has purchased land near Las Vegas with plans to build the largest renewable diesel refinery in the Western United States.

Permitting is presently under way for the facility planned for Apex, NV., about 20 minutes north of Nellis Air Force Base. The new refinery would have a capacity of 100 million gallons per month of renewable diesel.

According to VRD, the primary feedstock to be processed by this new refinery will be used motor oil but may also include petrochemical wastes, seed oils, and animal fats.

VRD has been selling renewable diesel in the Las Vegas market for the last two years under the leadership of company founder Timothy Wetzel.

SOCALGAS LOOKING TO HYDROGEN AS MOTOR FUEL

LOS ANGELES, CA. —SoCalGas, the natural gas utility for Southern California, has begun transitioning its fleet to hydrogen power.

SoCalGas is currently engaged in more than 10 pilot projects related to hydrogen, including a partnership with Netherlands-based HyET Hydrogen to allow hydrogen to be transported via the natural gas pipeline system, then extracted and compressed at fueling stations that provide hydrogen for Hydrogen Fuel Cell Electric Vehicles.

For its own use, the utility has taken delivery of over 70 Toyota Mirai HFCEVs so far this year.

"Each vehicle in our light duty over-the-road fleet is driven an average of 10,000 miles per year. The zero-emissions Toyota Mirai HFCEVs have a driving range of 400 miles and since they run on hydrogen the only by-product is water," said Sandra Hrna, vice president of supply chain and operations support at SoCalGas. "Transitioning some of our fleet to HFCEVs will help us reduce emissions, moving SoCalGas closer to our net zero goal and helping California reach carbon neutrality faster."

SoCalGas also plans to begin using its first hydrogen-powered fuel cell electric Class 3 commercial service body utility truck this year. The truck, manufactured by Hyzon Motors, is expected to reach a maximum power of 200 kilowatts, with a range of 300 miles and will be built on the existing chassis OEM used by SoCalGas.

Originally published in the August 2022 issue of the O&A Marketing News.
© KAL Publications Inc. 2022