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PRESS RELEASE: AGE Refining Nets 50 Million Gallon Jet-Fuel Contract with Air Force
AGE Refining Nets 50 Million Gallon Jet-fuel Contract with Air Force AGE Refining Inc. has been awarded a 50 million gallon contract for the next year to provide jet fuel to area Air Force bases. The fixed price with economic price adjustment contract was awarded by the Defense Energy Support Center in Fort Belvoir, Va. It has a performance completion date of April 30, 2006, with contract funds to expire at the end of fiscal year 2006. Glen Gonzalez, executive vice president of AGE Refining, notes that the contract represents a 5 percent increase in volume from one the company held for the previous year. “We are pleased to have the incremental volume, “ he says. “We continue to look at government contracts such as this as the cornerstone to our business.” The contract calls for AGE Refining to provide jet fuel for Randolph and Lackland Air Force bases in San Antonio and for Laughlin Air Force Base near Del Rio. Gonzalez says the company did not take it for granted that they would continue to have the Air Force jet fuel contract. “While there is precedent over the years, we feel fortunate to have received this business,” he says. “It is not something that we assume will just happen. The contract is up for review every year, and we know that we have to continue to demonstrate our ability to provide the fuel at an affordable cost.” Diesel Decision AGE Refining manufactures, refines and markets jet fuels, diesel product, solvents, and other highly specialized fuels. The company also holds the contract to supply diesel fuel to VIA Metropolitan Transit, San Antonio’s public transportation service. Recent regulatory changes that affect the amount of sulfur that can be left in fuels will not affect the Air Force contracts because the regulations do not apply to jet fuels. However, they will have an impact on the company’s diesel business. “We are looking ahead to finding strategic options for our diesel material knowing we have diesel as a major issue on the horizon,” Gonzalez says. In order to make the necessary changes at the company’s refinery to produce the low-sulfur diesel that will soon be required will require a substantial investment of capital and resources. Gonzalez says the company has not yet made a decision as to whether or not it wants to do that. “A lot of people are looking at spending a lot of money and others are looking at other options,” he says. “It would be a sizable reinvestment into the business. If we have to find other options for our diesel material.” AGE Refining is a 10-year-old San Antonio oil refining company. Its refinery a 7811 S. Presa has the capacity to process 9,500 barrels per day of crude oil. It specializes in producing distillates – a range of refined products that include diesel, jet fuel and solvents. The company does not produce any gasoline.
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