October 30, 2013 / 3:41 PM / 4 years ago

Phillips may buy more railcars to move crude to refineries-CEO

HOUSTON, Oct 30 (Reuters) - Independent U.S. refiner Phillips 66 may buy more railcars to move inland U.S. and heavy Canadian crude to its refineries on top of the 2,000 expected to be delivered by the end of this year, Chief Executive Greg Garland told analysts on Wednesday.

Phillips 66 has received 1,270 of the railcars it bought last year so far in 2013, and Garland said the company was “thinking about buying some more railcars.” Rail opens access to cheaper crudes that refiners can run instead of more expensive imports, bolstering profits.

Garland also said as Phillips 66 and other refiners with plants on the U.S. West Coast rail in more inland U.S. and Canadian heavy crude, Alaskan North Slope crude prices will fall, turning it into a so-called “advantaged crude” as well.

“I do think between what ourselves and others are doing on the West Coast we’re going to pressure ANS prices prices,” he said.

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