UPDATE 1-PBF increasing crude rail shipments on higher U.S. oil prices

Thu Oct 31, 2013 4:50pm EDT
 
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* Company expanding offloading capability for railed crude

* Had cut rail shipments in 3Q on lower oil prices; ramping back up

* Delayed Canadian crude offloading expansion

By Kristen Hays

HOUSTON, Oct 31 (Reuters) - Independent U.S. refiner PBF Energy Inc is expanding crude-by-rail offloading infrastructure at its Delaware refinery to receive more North Dakota Bakken crude than it can process, executives told analysts on Thursday.

The 182,200 barrels-per-day Delaware City refinery can unload about 100,000 bpd of Bakken light crude delivered via rail. The $10 million expansion of offloading capacity, to be finished by May 2014, would increase that to about 125,000 bpd.

PBF Chairman Tom O'Malley said in a conference call with analysts that the Delaware plant can run up to 100,000 bpd of Bakken crude, but the rest could be barged to the company's 160,000 bpd refinery in Paulsboro, New Jersey.

O'Malley said the Paulsboro plant already takes some barge-delivered light crude from other East Coast terminals, but sourcing it from its sister plant in Delaware is "a much more economic move than taking it from third parties."   Continued...