Tesoro & Savage Building Crude Unloading & Marine Loading Facility - Vancouver, WA

Tesoro and Savage Companies plan to build a 120,000 b/d crude-by-rail unloading and marine loading facility in Vancouver, Washington. The facility will be a likely destination for crude from Western Canada and the Bakken. the marine loading facility will provide access to multiple refineries along the West Coast. The facility is expected to cost between $75 and $100 million, with an in service date of some time in 2014. Initial capacity will be 120,000 b/d, with expansion capability up to 280,000 b/d. Approximately 40,0000 b/d of Bakken crude is already moving to refineries in Washington.

This development means crude volumes moving west could grow to 160,000 b/d. The Bakken provides the perfect supply source for a project like this.

“Building upon the recent success of the rail unloading facility at our Anacortes, Wash., refinery, where we have been delivering Mid-Continent crude oil via unit train in an environmentally sound and cost-effective manner, this project is the ideal next step for Tesoro as we drive additional feedstock cost advantage to the remaining refineries in our West Coast system.”

— Greg Goff, CEO of Tesoro

You can read more about oil prices received on the West Coast in the article Bakken Crude Can Get Premium Prices On the West Coast.

“We are looking forward to bringing crude oil destination services to the Port of Vancouver.”

— Kirk Aubry, COO of Savage.

The initial lease agreement is for ten years with the Port of Vancouver. Savage will oversee the design, construction, and operation of the facility.

Read more in the press release at tsocorp.com

Continental - PBF Energy To Move Bakken Crude to Delaware

Plains Crude By Rail Costs

Continental has signed an agreement with PBF Energy to supply Bakken crude oil to Delaware City, DE.

Oil will be delivered to PBF Energy's double loop track at its Delaware City Refinery. Over the past year, Continental has moved crude to the West, East, and Gulf Coasts by rail to maximize crude oil price realizations. Areas paying international crude prices offer between a $10-15 premium over markets reflecting WTI prices.

Continental Resources COO, Rick Bott, added, "This unique transaction illustrates the emerging shift in the light sweet crude market. In addition to diversifying Continental`s customer base and streamlining our value chain, it allows us to deliver unblended premium Bakken crude to the East Coast - a market that has historically been driven by imports of foreign oil."

Continental's size allows the company to negotiate transactions like this one that aren't huge, but provide price security, while bypassing over supplied markets in the Mid-continent.

PBF`s CEO, Tom Nimbley, said, "PBF has made significant investments in acquiring rail cars and developing our East Coast rail delivery infrastructure to increase our access to North American crude oil, which positions PBF to benefit from these cost-advantaged crudes. Delaware City`s heavy and light crude rail discharge facilities allow us to work directly with producers in Canada and the Mid-continent, like Continental Resources, and provide us with a competitive advantage versus northeast refiners that rely on third parties to deliver North American crude oil."