February 5, 2013 [OPIS] - PBF Energy, soon to take delivery of its first unit train of Bakken crude oil at its Delaware City refinery, is already planning to double the amount of heavy crude the plant takes in by rail.
The PBF Energy Delaware City refinery’s new 70,000-b/d rail facility is now completed and expects to see the discharge of its first unit train of Bakken this week, the company said Monday morning. Seventeen more unit trains are scheduled to arrive in the next two weeks.
The plant’s rail facilities now have the capability of discharging 110,000 b/d of oil — 40,000 b/d of heavy crude and 70,000 b/d of light crude.
PBF is so satisfied with the Canadian heavy crude it has run at the 190,000-b/d Delaware City refinery that it now plans to spend $50 million to add another 40,000 b/d of heavy crude unloading capacity there, Monday’s announcement said.
The project, if approved as expected at PBF’s February board meeting, would be completed in the fourth quarter of this year.
“We believe that Canadian heavy barrels will be the most economic barrels on the market and we intend to take the necessary steps to maximize our exposure to this advantaged crude,” CEO Tom Nimbley said.
As of Friday, Western Canadian Select was valued some $31/bbl below West Texas Intermediate and Bakken was talked at a discount of $3.25-$3.40 versus the U.S. benchmark.
PBF has also entered into agreements to increase the number of rail cars it owns or leases to transport crude oil. The company will add 2,000 coiled, insulated cars to move heavy crude beginning in 2014 through the first quarter of 2015.
Delivery of a previously contracted 1,600 coiled cars begins in the second quarter of this year.
In addition, the company will increase its fleet of general purpose cars by 500 (to be delivered in 2013) to bring the total to 800.
