TEXAS CITY — Plans to bring the state’s first Marathon Petroleum convenience store to Texas City are on hold.

In February, the company confirmed it had reached an agreement with Robert Thalji, who owns a gas station, auto repair shop and used car sales at the corner of Palmer Highway and state Highway 146.

Thalji said three months ago he expected the re-branding to be done by the end of March.

But along the way, the deal fell apart.

“We are disappointed that we were not able to move forward with an arrangement,” said Marathon Petroleum spokeswoman Angelia Graves.

“It is our understanding that the dealer now plans to pursue a different path.”

Thalji did not return calls from The Daily News.

Marathon started looking for a location after it purchased its Galveston Bay Refinery from BP last year. Despite the setback, Marathon hasn’t given up on finding a location in Texas City.

“We will continue to evaluate opportunities to bring the Marathon brand to the area,” Graves said.

Contact Mainland Editor T.J. Aulds at 409-683-5334 or tjaulds@galvnews.com.

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