* California refineries seeking cheaper crude
* Company also looking at railcars able to transport
HOUSTON Feb 5 Phillips 66 has begun
moving cut-price Canadian crude to its California refineries via
rail, an executive told analysts on Tuesday at a Credit Suisse
energy conference in Colorado.
"We're beginning to deliver Canadian crude to our California
refineries by rail," said Tim Taylor, executive vice president
for commercial, marketing, transportation and business
development for Phillips 66.
He gave no further detail, nor did analysts ask during the
California refiners are looking at different ways to tap
into cheap inland U.S. crude already run by refiners in other
regions, as well as even cheaper Canadian heavy crude.
Last week Phillips 66 Chief Executive Greg Garland told
analysts that the company was looking at railcars capable of
transporting Canadian heavy crude to the West Coast.
The company already has bought 2,000 general purpose
railcars to move inland crude to its refineries, but Garland
told Reuters they are looking at coiled tube cars that are
suited to bitumen in Canada's heavy oil deposits that must be
heated in order to flow.
(Reporting by Kristen Hays; Editing by Phil Berlowitz)