Good Morning
Good Morning

Hess stations converting as Speedway signs go up on Long Island

A Hess sign sits on the ground after

A Hess sign sits on the ground after being replaced Wednesday, May 13, 2015, by a Speedway sign at a gas station at Deer Park Avenue and Grand Boulevard in Deer Park. Credit: Ed Betz

Long Island's ubiquitous Hess gasoline stations are being converted to Speedway outlets under an agreement announced last year for Marathon Petroleum Corp. to purchase Hess' retail stores.

Five stations a day are being converted in a 24-hour turnaround, Marathon says on its website.

"Speedway started the process of converting Hess locations in the New York City area to Speedway on April 21, 2015," a Marathon spokeswoman said in an email Wednesday. "We anticipate completion of the conversions within this area around mid-June. There are approximately 183 Hess stores that will be converted to Speedway in New York City and the surrounding areas."

Hess said last year that its popular toy trucks will continue to be produced under the Hess name but eventually will be sold online only.

The $2.87 billion purchase of Hess' stations -- technically by Marathon's Speedway LLC unit -- melds Hess' 1,256 company-owned outlets and another 86 independently owned stations in 16 states into Marathon's Speedway chain of 1,480 company-owned stores in nine states, said Marathon, which is based in Findlay, Ohio.

Hess stations are concentrated along the East Coast. Speedways are largely in the Midwest, so the two chains overlap in only two states -- Tennessee and Pennsylvania. The combined organization will operate in 23 states.

Marathon Petroleum also sells Marathon brand gasoline through about 5,200 independently owned retail outlets in 18 states.

Hess Corp., based in Manhattan, said it was selling its retail outlets to focus on producing oil and natural gas.

The deal also included transport trucks and capacity on the Colonial Pipeline system, which brings fuel from the Gulf of Mexico region to the Northeast.

More news