January 25, 2013 [OPIS] - PBF Energy is building new crude storage tanks at its 170,000-b/d Toledo refinery in Ohio, Tom Nimbley, the company's chief executive officer, told OPIS on Thursday.
The tanks, which will have a total storage capacity of about 600,000-700,000 bbl, will be operational at end-2013, he said.
Nimbley was speaking on the sidelines of the Argus Americas Crude Summit. The two-day conference ends on Friday.
The storage tanks will complement that Midwest refinery’s 10,000-b/d crude deliveries via trucks, he said.
The new storage tanks will allow PBF to create a supply buffer (in case of emergencies) to supplement existing oil storage of several hundred thousand barrels. In addition, the new storage will allow PBF to begin trading crude oil, Nimbley said without elaborating further.
PBF Toledo‘s additions to its logistical assets (which also include new rail unloading capability) give the plant more flexibility in running a cost-advantaged crude oil slate.
However, the value that newly public PBF could create by bundling logistics assets (particularly those with proximity to oil production in western Canada and the Midcontinent) in the structure of a master limited partnership is likely not lost on the company’s top management.
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