Giant Industries, Inc. said this week that it will sell to Pilot Travel Centers LLC Giant’s Travel Center located near Gallup, New Mexico. Also negotiated with the agreement, Pilot agreed to a long-term supply arrangement in which Giant will supply refined petroleum products from its Ciniza refinery.
“When we were approached about a possible sale of our travel center, both parties agreed that maintaining the sale of petroleum products from our Ciniza refinery would be an important component of any transaction," said Fred Holliger, Giant's chairman and chief executive officer.
“This objective will be accomplished by entering into a long-term product supply agreement with Pilot. In addition to the committed demand for petroleum products from our Ciniza refinery, it will contribute incremental earnings for our refining business unit and provide Pilot with a stable long-term fuel supply," said Holliger.
The sale is expected to close prior to June 30.
Giant owns and operates one Virginia and two New Mexico crude oil refineries, a crude oil gathering pipeline system based in Farmington, N.M., which services the N.M. refineries, and finished products distribution terminals in Albuquerque, N.M. and Flagstaff, Arizona Giant is also the parent company of Phoenix Fuel Co. Inc., an Arizona wholesale petroleum products distributor.
Pilot Travel Centers a joint venture 50 percent owned by Knoxville, Tenn.-based Pilot Corp. and 50 percent owned by Marathon Ashland Petroleum LLC. Pilot Travel Centers LLC operates 270 travel centers in 37 states.