UPDATE 2-Tesoro says plan for Washington state crude railport delayed

Thu May 1, 2014 6:30pm EDT
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* Construction now slated for late 2014-early 2015

* Delay due to state-required environmental impact study

* Project cost up to $150 mln-$190 mln, previously $100 mln (Recasts with length of delay, adds detail about project and oil by rail on U.S. West Coast)

By Kristen Hays

HOUSTON, May 1 (Reuters) - The start-up of a major Pacific Northwest rail-to-barge terminal that could bring hundreds of thousands of barrels per day of cheap North American crude to the U.S. West Coast will be delayed by at least a few months due to environmental requirements, the top executive at Tesoro Corp said on Thursday.

In addition, the cost for Tesoro's joint-venture project at the Port of Vancouver in Washington could be as much as 90 percent more than originally planned, Chief Executive Greg Goff said during the company's quarterly earnings call.

The project is seeking permits to handle up to 380,000 barrels per day.

The delay comes as opposition to the crude-by-rail movement, which is booming in tandem with the U.S. shale oil revolution, is gaining steam in the aftermath of several fiery crude train crashes and derailments since last summer.

On Wednesday 15 railcars on a CSX Corp crude train derailed in Lynchburg, Virginia, catching fire and spilling about 831 barrels of oil into the James River.   Continued...