Philadelphia Refinery Opens Rail Yard to Support Bakken Crude Delivery - Video

Philadephia Energy Solutions has built a state-of-the-art crude by rail unloading facility that can handle up to three unit trains. The company's two refineries south of Philadelphia, Point Breeze and Girard Point, are the largest consumers of Bakken crude. Rail receipts of 160,000 barrels arrive on a daily basis.

"Times change and if the better crudes start moving down into the Utica, we can take it by rail. If it`s in the Permian Basin, we can take it by rail," Rinaldi said. "So we`re connected everywhere and we don`t get locked in."

In total, the two refineries can process 330,000 b/d of crude oil.

Enbridge Plans Philadelphia Rail Facility for Bakken Crude

Crude Oil Rail Car
Crude Oil Rail Car

Enbridge Rail has entered an agreement to partner in a unit-train facility and pipelines near Philadelphia. The partnership will be called the Eddystone Rail Company. Planned facilities will be used to bring Bakken crude to Pennsylvania refineries. The project is expected to handle 80,000 b/d by the third quarter 2013 and can be expanded to 160,000 b/d if needed. Current plans call for building track to accommodate 120 rail cars. The facility will include a 200,000 bbl storage tank and barge loading capability.

Enbridge will own 75% of the venture and Canopy Prospecting will own the remaining 25% interest. The companies are expected to spend $68 million constructing the facility. Enbridge will oversee the construction and day to day operation of the facility.

The latest announcement simply further expands Enbridge's footprint in the Bakken Shale.

"In early 2013, Enbridge's Bakken Expansion Program will add 200,000 bpd of increased export pipeline capacity from the Bakken - 80,000 bpd into Berthold and 120,000 bpd into Cromer, Manitoba - taking Enbridge's total capacity from North Dakota to 475,000 bpd.

"Rail is the fastest way to provide increased export capacity out of the Bakken, creating a near-term solution to transportation bottlenecks and the resulting crude oil pricing differentials," said Stephen J. Wuori, President, Liquids Pipelines, Enbridge Inc. "Eddystone is an important step in our longer-term strategy to accommodate the anticipated growth of light crude oil supply and to provide Bakken producers and PADD I refiners cost-effective capacity to premium markets on the eastern side of North America."