Kenan Advantage Group and Hess Corporation Sign Single-Source Agreement
NORTH CANTON, OH, January 29, 2009 – Kenan Advantage Group (“KAG”) today announced it has entered into a five-year fuel transportation agreement with Hess Corporation. KAG will be the single-source provider of bulk fuel transportation for all of the company’s gasoline-retail convenience stores in central and south Florida. Hess is one of the leading independent gasoline-convenience retailers on the East Coast with more than 1,370 stations and convenience stores in 14 states. KAG is North America’s largest bulk transportation and logistics provider to the petroleum and specialty products industries. The new contract went into effect January 1, 2009.
According to Dave Cerulo, Manager of Traffic and Administration for Hess, the relationship is a good one. “KAG’s regional and national scale coupled with their reliable execution helps us to effectively manage our fuel supply in the demanding Florida marketplace,” Cerulo said. “After a 10-year relationship with KAG, we are confident in their ability to provide us with value-added services to meet the challenges of an ever changing and dynamic industry.”
“The Florida market can be tricky from a fuels transportation perspective due to significant seasonal volume changes and a constrained product supply infrastructure,” said Bruce Blaise, Executive Vice President of KAG’s Fuels Delivery Group. “With North America’s largest fuel transportation network, KAG is well positioned to address these challenges while providing superior supply chain execution to successful organizations such as Hess Corporation,” continued Blaise.
Hess Corporation (NYSE:HES), with headquarters in New York, is a global integrated energy company engaged in the exploration, production, purchase, transportation and sale of crude oil and natural gas, as well as the production and sale of refined petroleum, natural gas and electricity products. Hess is also one of the largest providers of natural gas, fuel oil and electricity to commercial and industrial customers in 14 East Coast states. More information on Hess Corporation is available at www.hess.com.
Kenan Advantage Group operates nationwide through its subsidiaries: Advantage Tank Lines, BXI, KAG West, Kenan Transport, Klemm Tank Lines, North Canton Transfer, Petro-Chemical Transport and Transport Service Co. KAG’s fleet consists of more than 3,100 power units and 4,100 trailers. KAG also provides specialized supply chain logistics services through KAG Logistics and KAG Ethanol Logistics (www.kaglogistics.com).
