Tesoro Delivers First Bakken Oil Unit Train to Northern California Refinery

Tesoro Refinery Map - Golden Eagle Refinery Highlighted

Tesoro Corp delivered its first unit train carrying Bakken crude to Golden Eagle Refinery in Northern California last week.

Tesoro built a unit train unloading facility that allows the company to process Bakken barrels for the first time in Northern California.

The refinery is primarily supplied by Alaskan and foreign crude. Tesoro refines Bakken crude at the company's Mandan Refinery in North Dakota, the Anacortes Refinery in Washington, and now the Golden Eagle Refinery in California.

Tesoro's refinery in Mandan, ND, is running price advantaged Bakken crude at full capacity of 70,000 b/d.

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