Tesoro plans to move more Bakken crude by unit train

Tesoro Corp. plans to move 50,000 b/d of crude oil from the Bakken formation in North Dakota to its 120,000-b/cd refinery in Anacortes, Wash., by yearend, Chief Executive Officer Greg Goff said during a second-quarter earnings conference call.

Last year, Tesoro announced plans to transport 30,000 b/d on a dedicated unit train. Earlier this year, Tesoro said it had authorization to bring 50,000 b/d of Bakken crude into its Anacortes rail unloading terminal.

In its second-quarter financial results, Tesoro said it expects to load the first unit train with Bakken crude oil destined for Anacortes sometime during August, and the Anacortes rail unloading terminal is on schedule to be completed in September.

Tesoro anticipates rail shipments will start in September at 30,000 b/d and be ramped up to 50,000 b/d by yearend.

Last year, Tesoro executed a long-term agreement with Rangeland Energy LLC for access to Rangeland's crude loading terminal and pipeline facility in Williams County, ND. It will have a direct connection to Tesoro Logistics' High Plains crude oil gathering system (OGJ Online, July 15, 2011).

On Aug. 2, Tesoro reaffirmed its intention to offer the unit train unloading facility in Anacortes to Tesoro Logistics LP. Closing is expected in the fourth quarter. TLLP is a limited partnership formed by Tesoro Corp. to own, operate, develop, and acquire crude oil and refined products logistics assets.

At the Mandan, ND, refinery, Tesoro in June completed a $35 million expansion, boosting crude capacity to 68,000 b/d from 58,000 b/d. The expansion enables Tesoro to handle more oil from the Bakken formation and elsewhere in the Williston basin (OGJ Online, Mar. 21, 2011).

Contact Paula Dittrick at paulad@ogjonline.com.

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