* Completes 70,000 bpd light crude rail unloading facility
* Expects 17 more trains of Bakken crude in next two weeks
* Plans $50 mln expansion to add 40,000 bpd of heavy crudes
By Cezary Podkul
NEW YORK, Feb 4 PBF Energy said Monday
it expects the first trainload of North Dakota's Bakken crude
oil to discharge this week at its 190,000 barrel-per-day (bpd)
refinery in Delaware City, Delaware.
Seventeen more trains are scheduled to arrive in the next
two weeks, giving the independent U.S. refiner more access to
cheap North American crude oil in a wider industry shift away
from high-cost imported crude.
The company has completed a rail expansion project at
Delaware City that allows the refinery to handle 70,000 bpd of
light crude oil deliveries from places like the Bakken. The
refinery can also handle 40,000 bpd of heavier Canadian crude
rail deliveries for a total of 110,000 bpd.
The lack of pipeline capacity from Canada and the Bakken is
forcing refiners like PBF to ship crudes by rail. It has also
driven down crude oil prices to the point where more costly
shipping methods, like trains, now make economic sense for
Another project is already in the works to double Delaware
City's Canadian crude-by-rail delivery capacity from 40,000 to
80,000 bpd, PBF said. The project is expected to cost about $50
million and be completed in the fourth quarter of 2013.
"We believe that Canadian heavy barrels will be the most
economic barrels on the market and we intend to take the
necessary steps to maximize our exposure to this advantaged
crude," PBF Chief Executive Officer Tom Nimbley said in a
PBF said it is procuring 2,000 more railcars to ship the
heavy Canadian crude, plus an additional 500 general purpose
railcars, expected to be delivered in 2014 and 2015. With the
new railcars, PBF said, it will have a total of 3,600 owned and
leased railcars capable of handling heavy crudes.
A PBF spokesman could not immediately provide more details
on the railcar financing.
Shares of PBF were up 0.57 percent at $33.49 per share in
late-morning Monday trading.