UPDATE 1-Phillips 66, Targa end crude-by-rail deal

Wed Sep 11, 2013 6:22pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Five-year deal ended after one year

* Phillips 66 building own rail facility at Washington refinery

* Company says will continue efforts to run cheaper crudes

By Kristen Hays

HOUSTON, Sept 11 (Reuters) - Independent U.S. refiner Phillips 66 has ended its five-year crude supply contract with energy logistics company Targa Resources Partners LP, the company said on Wednesday.

"Phillips 66 and Targa have reached a mutual agreement to end a five-year contract that began in August 2012 to provide rail unloading and barge loading services for crude oil at Targa's Tacoma, Washington terminal," Phillips 66 said.

Phillips 66 said the companies determined that "it was not feasible" to move forward with building the new infrastructure at Tacoma needed to ramp up shipments.

The terminal had been able to accept some crude by rail on mixed-freight trains, but needed to be expanded to offload up to 30,000 barrels per day from so-called unit trains, or those that carry only crude.

Phillips 66 declined to elaborate further, and Targa did not immediately return a call for comment.   Continued...