February 5, 2013 / 10:06 PM / in 6 years

UPDATE 1-Phillips 66 moving some Canadian crude to Calif. refineries -exec

* California refineries seeking cheaper crude

* Company also looking at railcars able to transport Canadian crude (Adds details)

HOUSTON, Feb 5 (Reuters) - 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 webcast event.

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)

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