By SAABIRA CHAUDHURI
Phillips 66 reached agreements with Enbridge Energy, Targa
Resources and Magellan Midstream for rail loading and
terminaling services and a pipeline project, a move the energy company
said will increase supplies of cost-advantaged North American
crude oil to its US refineries.
"We are aggressively pursuing increased access to advantaged
crudes in North America by partnering with leading third-party
transportation providers and better leveraging our own system
capabilities," CEO Greg Garland said.
"Increasing our utilization of those advantaged crudes should
allow us to capture significant value in our refining and marketing
Under the agreements, Enbridge agreed to a three-year deal
for railcar loading of Bakken shale crude at Enbridge's
Berthold, N.D., terminal beginning in May, with volumes ramping
up to 35,000 to 40,000 bpd by November.
The crude oil will be delivered to Phillips 66 refineries on
the West and East Coasts, and the company may also pursue
opportunities to send it to its Gulf Coast refineries.
Separately, Targa agreed to provide rail unloading and barge
loading services in Tacoma, Wash. The five-year agreement,
which began in late 2012, allows advantaged US or Canadian
crude oil to be unloaded from railcars at Targa's Tacoma
terminal and transloaded onto barges for delivery to the
Phillips 66 Ferndale, Wash., refinery.
The facility also allows for delivery into the San Francisco,
Calif., refinery, where crude imported from outside of North
America could be replaced.
Phillips 66 also detailed its agreement with Magellan to
transport advantaged crude on Magellan's pipelines near
Phillips's refinery in Ponca City, Okla. The project will replace West Texas
Intermediate crude from Cushing, Okla., with virgin crude from
the nearby Mississippian Lime play.
Phillips 66 said is also investing in its own transportation
assets in Oklahoma to transport an additional 40,000 bpd
of Mississippian Lime crude to the Ponca City refinery, and at
the refinery to accept crude from the
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