Refiner PBF inks Bakken crude supply deal with Continental

Wed Apr 10, 2013 9:24am EDT

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NEW YORK, April 10 (Reuters) - PBF Energy Inc has
inked a deal to take Bakken shale crude produced by Continental
Resources to its Delaware City refinery, the latest step by East
Coast refiners to leverage the benefits of the U.S. oil boom to
struggling plants. 
    Volumes of how much Bakken crude PBF would buy from
Continental through the deal, which was announced in a press
statement released on Wednesday, were not immediately available.
    PBF Energy in February announced the completion of a second
rail unloading facility at the 182,000 barrel per day Delaware
plant, allowing the plant to take a total of 70,000 bpd of
light, sweet crude from North Dakota's Bakken shale and 40,000
bpd of Canadian heavy oil. 
    "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," said PBF's
Chief Executive Officer Tom Nimbley in a statement.
    "(This provides) us with a competitive advantage versus
northeast refiners that rely on third parties to deliver North
American crude oil."
    East Coast refiners have traditionally relied on imported
crude West Africa and the North Sea, and have faced a
competitive disadvantage relative to plants in the Midwest and
Gulf Coast. The boom in U.S. and Canadian output has brought
down costs for those plants, but a lack of pipeline
infrastructure to the East Coast has meant plants there have
been forced to rely on higher cost imports. 
    Several East Coast plants have shut over the past two years,
while others have sought to bring in Bakken and Canadian crude
by rail. 
    Delta Air Lines has also sought to bolster profits at its
refinery in Trainer, Pennsylvania by taking Bakken crude by
rail.
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