US Tesoro, Savage teaming up to develop crude-by-rail project

22 April 2013 22:50  [Source: ICIS news]

HOUSTON (ICIS)--Tesoro and Savage are forming a joint venture to develop and operate a new 120,000 bbl/day crude-by-rail unloading and marine loading facility at the port of Vancouver, Washington, the two companies announced on Monday.

The joint venture will help the port serve as a hub for the distribution of North American crude oil to refineries on the west coast, Tesoro and Savage said in a press release.

"This is an exciting project, and we are pleased to be partnering again with Savage," said Greg Goff, president and CEO of Tesoro. "Building upon the recent success of the rail unloading facility at our Anacortes, Washington, refinery, where we have been delivering mid-continent crude oil via unit train in an environmentally sound and cost-effective manner, this project is the ideal next step for Tesoro as we drive additional feedstock cost advantage to the remaining refineries in our west coast system."

The Tesoro-Savage joint venture will own the crude unloading and marine loading facilities and will enter into a land-lease agreement with the port for an initial period of 10 years, the companies said.

The facility is expected to go live in 2014 and will represent an investment of approximately $75m-100m (€57m-76m), the companies said.

It initially will be designed to handle 120,000 bbl/day but could be expanded to 280,000 bbl/day of capacity, they said.

Headquartered in San Antonio, Texas, Tesoro is an independent refiner and marketer of petroleum products and operates seven refineries in the western US with a combined capacity of about 675,000 bbl/day.

Savage, headquartered in Salt Lake City, Utah, is a supply chain solutions company that serves industries such as electric power generation, coal production, oil and gas, refining, agriculture, chemical, mining and manufacturing.

($1 = €0.76)

By: Jeremy Pafford
+1 713 525 2653

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