In a move that will expand its shipments of crude oil via rail, North American independent refiner PBF Energy is expanding its rail offloading capacity.
PBF Energy can currently rail 20,000 barrels per day of Western Canadian Heavy and Bakken crude from its 190,000 bpd Delaware City Refinery into the city of Delware. However, work is underway to double this offloading capacity to more than 40,000 bpd by September 2012 and 110,000 plus bpd by the beginning of next year.
‘We have been expanding our on-site rail facilities to import advantaged crudes from Western Canada and the Midwest,’ explains Herman Seedorf, manager of the Delaware City Refinery. ‘Delaware City is the only PADD 1 refinery with sour crude coking capability that can run lower-cost, Western Canadian Heavy crude oil, giving us a competitive edge. We are also keeping our options open by barging Bakken from regional third-party terminals into Delaware City and Paulsboro, backing out more expensive Brent-based crudes.’
PBF CEO Tom Nimbley notes: ‘These new crude fields in the US and Canada are game changers for our east coast refineries. We are the sole refiner in PADD 1 with on-site rail discharging capability. To ensure consistency of supply, we have committed to lease a significant number of coiled and non-coiled tank cars.
‘We believe that certain domestic and Canadian crudes will continue to have takeaway capacity limitations,’ Nimbley continues, ‘so rail delivery of crude oil into PADD 1 should remain viable for some period of time.’