Houston-Based Companies Enter Chemical Marketing Agreement
Frontier Oil and Refining Company (“Frontier”, NYSE: FTQ), a subsidiary of Frontier Oil Corporation, has selected The Plaza Group to market benzene produced at its El Dorado, Kansas, facility. The announcement follows Frontier’s recent phase-out of phenol and acetone production at El Dorado.
The Plaza Group will market up to 15 million gallons of benzene annually under a new, one-year agreement totaling $15 million per year and will continue to market toluene produced at the same refinery.
This agreement marks The Plaza Group’s entry into the benzene market, adding the aromatic compound to its current product lines which include a wide range of petrochemical products. Benzene is a chemical intermediate often used in the production of commercial and medicinal chemical dyes, and as a solvent for resins and fats.
The Plaza Group’s president, Randy Velarde, commented on the agreement saying, “Our long-standing relationship with the El Dorado facility, through multiple owners, makes this a particularly meaningful new product addition for us. We are pleased we have been selected to bring our marketing expertise to Frontier’s most recent product sales addition at its El Dorado plant.”
The Plaza Group entered into its original supply agreement with Texaco Refining and Marketing, which previously owned the El Dorado facility, in 1994. In 1997, the facility became part of Equilon, a newly formed joint venture between Texaco Refining and Marketing Inc. and Shell Oil Products. Finally, in 1999, the refinery was purchased by Frontier. The Plaza Group has been the sole marketer of El Dorado’s chemical intermediates from 1994 to present.
Frontier, a Houston-based independent refining company, operates a 110,000 barrel-per-day refinery located in El Dorado, Kansas, and a 41,000 barrel-per-day refinery located in Cheyenne, Wyoming. Frontier markets its refined products principally along the eastern slope of the Rocky Mountains and in other neighboring plains states. Frontier’s common shares are listed on the New York Stock Exchange. For more information on Frontier, visit the company’s web site at www.frontieroil.com.