Unlike the Midcontinent crude supply deals of its competitors in the Northeast, PBF’s new agreement does not involve a third-party logistics company.

The Bakken crude oil will be transported by rail to PBF’s double-loop track at its refinery in Delaware City, Del. The agreement is the first that Oklahoma City-based Continental has forged with a refiner on the East Coast, following earlier deals made with refiners on the West and Gulf Coasts, according to a statement issued by PBF.

“In addition to diversifying Continental’s customer base and streamlining our value chain, (the transaction) allows us to deliver unblended premium Bakken crude to the East Coast — a market that has historically been driven by imports of foreign oil,” Continental Resources President and CEO Rick Bott said in the statement.

PBF said it looked forward to growing its relationship with Continental and noted in the announcement that it had opened a new office in Oklahoma City. That office, along with one in Calgary, Alberta, will focus on sourcing North American crude oils and feedstocks for PBF’s refineries in Toledo, Ohio; Paulsboro (Billingsport and Paradise), N.J., and Delaware City.

According to PBF CEO Tom Nimbley the new deal gives the company an edge compared to Northeast competitors. “Delaware City’s heavy and light crude rail discharge facilities allow us to work directly with producers in Canada and the Midcontinent, like Continental Resources, and provide us with a competitive advantage versus northeast refiners that rely on third parties to deliver North American crude oil,” he said.

In early March, Phillips 66 and Global Partners signed a five-year contract for the supply of Bakken crude oil to Phillips’ Bayway refinery in Linden, N.J. PBF Delaware City‘s rail facilities can currently discharge 110,000 b/d of oil — 40,000 b/d of heavy crude and 70,000 b/d of light crude. The company plans to double the heavy crude unloading capacity to 80,000 b/d by the fourth quarter of 2013.

PBF’s East Coast rail delivery infrastructure also includes leased or owned railcars coming into its possession this year and in 2014. The fleet will include 3,600 coiled, insulated railcars to move heavy crude and 800 general purpose cars.

In February, the company said all of the heavy crude shipped by rail to Delaware City would be processed there while light crude barrels would be split between Delaware City and Paulsboro.

First-quarter 2013 processing of Bakken crude was estimated in February at an average of 50,000 b/d. PBF has projected that overall intake of cost-advantaged crude oil would grow to 100,000 b/d in the second quarter, 110,000 b/d in the third quarter and 150,000 b/d in the last three months of the year.

The company noted that those volumes were based on current forecast and railcar delivery schedules and are subject to change.