* PES to take delivery of two unit trains of crude by Q3
* Unit train that PES will use contains 70,000 bpd of crude
* Current turnaround work to be finished by early March
NEW YORK, Feb 21 Refiner Philadelphia Energy
Solutions (PES) expects to be bringing in by rail 140,000
barrels of Bakken crude per day by the third quarter of this
year, Chief Executive Officer Philip Rinaldi told an energy
forum late on Thursday.
PES, a joint venture of Carlyle Group and Energy
Transfer Partners, which bought former owner Sunoco
last year, decided to take advantage of swelling supplies of
crude from the huge shale oil play in the north west.
"By the end of the year, we will be the single largest
consumer of Bakken oil," Rinaldi told the New York Energy Forum,
outlining a three-phased project to expand the ability of the
two-refinery complex to take in the crude.
Tapping into rail as a means of getting cheap domestic
crude, rather than importing from abroad, had turned around the
plant, which had been losing a million dollars a day for three
years running, he said, citing Sunoco's assessment of losses.
By April 1, PES will be able to accept two or three unit
trains filled with crude per week. By July and perhaps as early
as the end of May, it will take five unit trains, and in the
third quarter of this year, 14 in total, Rinaldi said.
A unit train does not have its cars disassembled, reloaded
or redirected throughout its journey -- the entire train carries
the same cargo from point of origin to destination.
The unit trains PES will use carry 70,000 barrels of crude a
day in 120 cars that stretch 1.5 miles. Once the third phase is
complete, two trains a day will offload at the 147-year-old
complex, Rinaldi said.
The Girard Point and Point Breeze refineries that make up
the PES plant have a collective refining capacity of 330,000
barrels a day.
When asked about another popular route of transporting
Bakken oil by rail to the port of Albany, NY, and then taking it
by barge to its final destination, Rinaldi said such a method
"becomes very sloppy" and costs several dollars a barrel more.
He said he expected a major turnaround project at the
complex to be completed in early March with a renovated residual
catalytic cracker that would improve the reliability and
efficiency of the operation.
Rinaldi said further work on the plant that would turn a
hydrotreater into a distillates hydrocracker would boost PES's
ability to export diesel to Europe by increasing the yield of
distillates in the refining process.