By Kristen Hays
HOUSTON, April 22 Independent refiner Tesoro
Corp and supply system provider Savage Companies will
build a new crude-by-rail and marine offloading facility in
southwest Washington State to help move cheap North American
crude to West Coast refining centers, the companies said on
The crude would come from "advantaged North American
sources" - such as North Dakota's Bakken shale oil play and
Canada - and the project will let Tesoro ship it to its three
West Coast refineries, a Tesoro spokeswoman said.
The facility at the Port of Vancouver, Washington, with an
initial capacity of 120,000 barrels-per-day (bpd) and expandable
to 280,000 bpd, is the latest in a series of moves by West Coast
refiners to tap cheap inland U.S. and Canadian crude already run
by their peers in other regions.
The $75 million to $100 million facility is expected to be
operational in 2014, pending regulatory approvals.
Last year Tesoro started up a new offloading facility at its
120,000 bpd refinery in Anacortes, Washington, about 244 miles
north of Vancouver, and began railing in 40,000 bpd of North
Dakota Bakken crude.
The company also is processing up to 5,000 bpd of Bakken
crude at its 166,000 bpd refinery in Martinez, California. The
Martinez refinery would need an offloading facility as well to
bring in more crude via rail, similar to the levels at
However, Martinez and Tesoro's 103,800 bpd refinery in
Wilmington receive waterborne crude imports. The new facility
would be able to receive U.S. and Canadian crude by rail and
then move it on the water to the California refineries.
Tesoro is awaiting regulatory approval of its $2.5 billion
bid to buy BP Plc's 265,000 bpd refinery in Carson, California
and related assets, including pipelines and three marine
Tesoro Chief Executive Greg Goff called the project with
Savage Cos the "ideal next step" in gaining cost advantages
through cheaper crudes at its remaining West Coast refineries.