By ALISON SIDER
PBF Energy completed an expansion of a rail terminal
allowing its Delaware City, Del., refinery to take in more
crude oil from Canada and from North Dakota's Bakken
The completion of the facility brings the amount of crude
that can be offloaded at the refinery to 110,000 bpd --
40,000 bbl of heavy Canadian crude oil, and 70,000 bbl of
light crude. When the project was announced last year, PBF
said it was bringing in 20,000 bbl of Bakken and Canadian
crude by rail.
Trains carrying Bakken oil are expected to begin arriving at
PBF's 182,200 bpd refinery this week.
Tom Nimbley, PBF Energy's chief executive, said in a
statement that the expanded rail facility puts PBF at a
competitive advantage compared to other East Coast
"PBF is now able to deliver significant quantities of
cost-advantaged North American crude oils directly to Delaware
City at very competitive pricing," he said.
East Coast refineries have traditionally imported crude oil
tied to Brent prices, which are substantially higher than oil
from the Bakken even after shipping costs. That price
difference has revived the fortunes of refiners in a region
where last year numerous refineries were expected to shut down
because of the high cost of imported oil.
But pipeline construction has focused on bringing
Canadian and Bakken crude south to the US Gulf Coast, leaving
East Coast refineries dependant on rail for delivery.
Last month, Phillips 66 said it signed a five-year contract
for rail delivery of 50,000 bpd of North Dakota crude to
its New Jersey refinery. Delta Air Lines said last month that
its Trainer, Pa. refinery will take a "test run"
delivery of Bakken crude this quarter and is evaluating more
long term crude sourcing options from the region.
PBF also said Monday that it will spend $50 million increase
the capacity of the heavy-crude rail unloading facility to
80,000 bpd by the fourth quarter of this year -- double the
It will move that heavy crude in its own rail cars. The company
announced that it has entered into agreements for 2,000 more of
the coiled and insulated rail cars used to transport heavy
crude oil, up from 1,600 cars it currently owns or
The company also announced agreements for 500 general-purpose
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