Review of Tesoro Vancouver Rail Terminal Stretches out Again
06.30.2015 - NEWS

June 30, 2015 [OPIS] - Washington state regulators are now seen taking most of the rest of 2015 to prepare an environmental review of the proposed Vancouver Energy project, which will likely mean a final decision on the rail-to-marine terminal doesn't take place until 2016.


Based on a recently released schedule, the Energy Facility Site Evaluation Council (EFSEC) began work on the draft environmental impact statement (EIS) earlier in June and expects to finish it in November.

In May, executives at Tesoro Corp. (which is developing the terminal with Savage Cos.) had said they expected the EFSEC to issue the draft EIS in June or July. Earlier hopes for issuance of the draft EIS had been May 2015 and fall 2014.

First announced in spring 2013, the Vancouver Energy project envisions a terminal with both rail unloading and marine loading capacity that will bring 360,000 b/d of Midcontinent crude oil to the West Coast.

The project is the largest of several crude-by-rail terminals proposed for the West Coast. Approval of just the Vancouver Energy terminal could make PADD5 the largest taker of Midcontinent crude, based on March 2015 crude by rail data from the Energy Information Administration. During that month, PADD1 took in 12.5 million bbl of PADD2 oil while the West Coast took 4.5 million bbl from the region.

As reported by OPIS in early June, the Army Corps of Engineers plans to seek public review and comment on the marine portion of the Tesoro-Savage terminal this summer. Public review periods are typically 30 days, a Corps spokesperson told OPIS, but processing the input makes the permit timeline variable depending on the number and kind of comments received.

Initial review of the draft EIS by the EFSEC and its contractors is seen beginning in August and concluding in November, with publication slated for Nov. 24.

A public comment period comes after that, followed by EFSEC making a recommendation on the project to the governor.

Based on previous guidance from Tesoro, following approval by the governor and issuance of permits, construction would likely take nine to 12 months, although operations could begin within about six months of construction’s start.

Initial expectations for completion of the $75 million-$100 million Vancouver Energy terminal had been 2014.

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