UPDATE 1-Alon USA will to maximize distillates

Mon Feb 14, 2011 11:22am EST

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 NEW YORK, Feb 14 (Reuters) - Alon Usa Energy Inc (ALJ.N)
has begun to reconfigure its 68,000 barrel-per-day Bakersfield,
California, refinery as a stand-alone vacuum gasoil
hydrocracker with start-up expected in June of 2011, a company
spokesman said on Monday.
 The Bakersfield hydrocracker will run VGO produced at the
company's 85,000 bpd Paramount refinery in Long Beach,
California, and produce gasoline and distillates for the
Bakersfield market.
 The reconfiguration will result in a 55 percent yield in
distillates at the refinery.
 This is the first phase of of a potential many-phase
reconfiguration at Bakersfield as Alon seeks to find other ways
to maximize returns on the Bakersfield refinery it bought out
of bankruptcy in 2010.
 The spokesman said that the combined Paramount-Bakersfield
refinery will will produce 35 percent distillates, 35 percent
asphalt and 30 percent gasoline when the work is completed in
 "The future growth of gasoline demand is negative," said
the spokesman, in explaining why Alon was increasing its
distillate yields at the expense of gasoline.
 (Reporting by Jeffrey Kerr; editing by Jim Marshall)

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