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March 21, 2013 at 12:10 pm #1718
Kicking its strategy of using cheaper crude oil from U.S. shale plays into high gear, Phillips 66 said Wednesday it has signed deals with three midstream companies to bring as much as 130,000 barrels a day of North American crude oil to its refineries.
“Increasing our utilization of those advantaged crudes should allow us to capture significant value in our refining and marketing businesses,” Greg Garland, Phillips 66 chairman and CEO, said in a statement.
Use of lower-cost domestic crude from the nation’s shale plays has helped to boost the bottom lines of U.S. refiners, including Phillips 66, as they are able to replace higher-cost imported oil.
The deals include rail loading and terminal services and a pipeline project and would displace a mix of imported crude oil and West Texas Intermediate with less expensive crude oil from the Bakken, Mississippi Lime and other plays in the United States and Canada.
- A three-year deal with Enbridge Rail for Bakken shale crude
- A five-year deal allows advantaged U.S. or Canadian crude oil to be unloaded from railcars at Targa’s Tacoma terminal and taken by barge to Phillips’ refinery in Ferndale, Washington.
- An agreement with Magellan’s pipelines near the Phillips 66 refinery in Ponca City, Oklahoma.
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April 5, 2013 at 10:38 am #4511
The unloading facility would allow a train with 100+ cars to have its cargo pumped out at a transfer rate of about 12,800 bbl of oil per hour.
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Refiners on the East and West coasts have worked in recent months to increase the amount of crude they can take in by rail to take advantage of oilsands and inexpensive, domestically produced oil that isn’t yet reached by pipelines.
The Northwest Clean Air Agency Similar said similar rail-unloading facilities have been approved at Tesoro and BPP refineries in Washington State. Work on Phillips 66’s proposed unloading facility is scheduled to begin this summer and be completed by December 2014, according to the filing. The Ferndale CatCracking refinery has a capacity of 96,000 bpd. Larry Ziemba, Phillips 66’s executive vice president for refining, project development and procurement, said last month that the company was considering a rail rack at the Ferndale refinery. Mr. Ziemba said the rack would allow the company to take in Canadian crude that could then be sent by ship to refineries in California.
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