April 23, 2013 [OPIS] - Tesoro Corporation (Tesoro) and Savage Companies (Savage) said on Monday that Tesoro Refining & Marketing Company LLC, a subsidiary of Tesoro, and Savage have formed a joint venture to develop and operate a new 120,000-b/d crude-by-rail unloading and marine loading facility at the Port of Vancouver, Wash.
The Tesoro-Savage joint venture is expected to drive additional feedstock cost advantage to the remaining refineries in Tesoro’s West Coast system, said Greg Goff, President and CEO of Tesoro.
The project is subject to approval by regulatory agencies and Port Commissioners.
With access to rail and existing marine infrastructure, the Port of Vancouver is positioned to serve as a hub for the distribution of North American crude oil to West Coast refining centers.
Tesoro and Savage have already operated in close partnership for almost 10 years on the West Coast.
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.
Savage will oversee and manage the design, construction and operation of the facility on the joint venture’s behalf.
The facility is expected to be operational in 2014 and will represent an investment of approximately $75 to $100 million, and will be designed to handle an estimated initial volume of 120,000 b/d with potential near-term expansion capability to 280,000 b/d.
