PBF says first Bakken crude to arrive in Delaware City this week

Mon Feb 4, 2013 12:14pm EST
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* Completes 70,000 bpd light crude rail unloading facility

* Expects 17 more trains of Bakken crude in next two weeks

* Plans $50 mln expansion to add 40,000 bpd of heavy crudes

By Cezary Podkul

NEW YORK, Feb 4 (Reuters) - PBF Energy said Monday it expects the first trainload of North Dakota's Bakken crude oil to discharge this week at its 190,000 barrel-per-day (bpd) refinery in Delaware City, Delaware.

Seventeen more trains are scheduled to arrive in the next two weeks, giving the independent U.S. refiner more access to cheap North American crude oil in a wider industry shift away from high-cost imported crude.

The company has completed a rail expansion project at Delaware City that allows the refinery to handle 70,000 bpd of light crude oil deliveries from places like the Bakken. The refinery can also handle 40,000 bpd of heavier Canadian crude rail deliveries for a total of 110,000 bpd.

The lack of pipeline capacity from Canada and the Bakken is forcing refiners like PBF to ship crudes by rail. It has also driven down crude oil prices to the point where more costly shipping methods, like trains, now make economic sense for coastal refineries.

Another project is already in the works to double Delaware City's Canadian crude-by-rail delivery capacity from 40,000 to 80,000 bpd, PBF said. The project is expected to cost about $50 million and be completed in the fourth quarter of 2013.   Continued...