Phillips 66 looking at rack to up rail shipments to Wash. refinery

Thu Mar 7, 2013 11:02am EST
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March 7 (Reuters) - Phillips 66 may build a rail rack to increase shipments of cheaper U.S. inland and Canadian heavy crude to its Washington state refinery, an executive told analysts on Thursday.

Larry Ziemba, executive vice president of refining, projects and procurement, said the rack could supplement smaller volumes already shipped to the 100,000 barrel-per-day (bpd) Ferndale plant. The refinery receives about 20,000 bpd through a third-party arrangement.

Ziemba also said the company may offload Canadian heavy crude in Washington state and then ship it to Phillips 66's two California refineries. The company has projects under way at the docks for those plants to enable such shipments, he said.