Global Partners says N.Y. railport expansion could be hampered

March 31 Mon Mar 31, 2014 10:22am EDT

March 31 (Reuters) - Global Partners LP's plans to expand its Albany, New York, crude rail-to-barge operation to handle heavy Canadian crude could be hampered by a moratorium imposed by the state, Chief Executive Officer Eric Slifka told analysts on Monday.

The company runs a 160,000-barrel-per-day operation in which North Dakota Bakken crude oil is moved by rail to Albany, then loaded onto barges for delivery to East Coast refineries.

Global Partners is seeking permits to add boilers, reconfigure a railyard and make other changes to add the capability of handling heavy Canadian crude that must be heated to flow.

The state imposed a moratorium on the company's expansion permit application so it can review the operation with a report on safety forthcoming at the end of April. The moratorium does not affect current operations, but would hamper "the carrying of different products," Slifka said. (Reporting by Kristen Hays in Houston)