* Company expects to ship up to 50,000 bpd by year-end
* Previous estimates were for 40,000 bpd
* Rail unloading facility on target to start in September
HOUSTON, Aug 2 Tesoro Corp aims to ship
more cut-price North Dakota Bakken crude to its Washington state
refinery than originally planned, CEO Greg Goff said on
The company had aimed to ship up to 40,000 barrels per day
of Bakken crude via rail to its 120,000 barrels-per-day (bpd)
refinery in Anacortes, Washington, to back out use of more
expensive Alaskan North Slope oil.
Tesoro said on Thursday that it had permits to ship another
10,000 bpd, bringing the total to 50,000 bpd.
Goff told analysts during the company's second-quarter
earnings conference call that Tesoro expects shipments to start
in September as planned, and ramp up to 50,000 bpd from the
initial 30,000 bpd by year-end.
"We don't know how easy it will be to get the unit trains in
and out of there," Goff said, referring to the gradual ramp-up.
"Our projected rate of 50,000 bpd will be to take a unit train
six out of seven days per week."
His comments came a day after Tesoro reported a 78 percent
spike in quarterly profit on Wednesday, surpassing analyst
expectations, on better West Coast refining margins.
Goff said that Tesoro expects to load its first westbound
unit train this month. The new facility is on target for
shipments to start in September.
Other companies are considering similar moves to ship Bakken
crude to Pacific Northwest refineries to obtain the same cost
benefit. BP Plc said it may ship Bakken crude to its
225,000 bpd Cherry Point refinery in Blaine, Washington,
and Phillips 66 plans to do the same for
its 100,000 bpd refinery in Ferndale, Washington.