Tesoro to move Bakken crude oil via rail

By OGJ editors
HOUSTON, July 15 -- Tesoro Corp. plans to transport crude oil via a dedicated unit train from the Bakken shale formation in North Dakota to its 120,000-b/cd refinery in Anacortes, Wash. Once permits are received, construction of unloading terminals at the refinery could take a year to complete.

Tesoro expects to spend $50 million on this project. Currently, Tesoro’s refinery takes delivery of 1,000-2,000 b/d of Bakken crude. Upon completion of the Anacortes rail project, Tesoro expects to deliver as much as 30,000 b/d of Bakken oil to the refinery.

“The high-quality, cost-advantaged crude oil will allow the company to decrease dependence on foreign waterborne feedstocks and declining Alaska North Slope production,” Tesoro said in a July 15 news release.

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, is expected to be in service by the first quarter of 2012.