U.S. crude-by-rail projects; Phillips 66 planning Bakken project

HOUSTON, Sept 16 (Reuters) - U.S. oil producers, refiners and logistics companies are deep into the crude-by-rail movement with dozens of projects throughout the United States and crude movements via rail that jumped 71 percent in 2013 compared t...

HOUSTON, Sept 16 (Reuters) - U.S. oil producers, refiners and logistics companies are deep into the crude-by-rail movement with dozens of projects throughout the United States and crude movements via rail that jumped 71 percent in 2013 compared to the prior year.

Rapid proliferation of oil-by-train shipments started more than four years ago to get oil to markets as pipeline infrastructure lagged booming U.S. and Canadian crude production. The Association of American Railroads said that 873,967 barrels per day originated on top U.S. railroads in the first quarter of 2014, a 9.6 percent increase over 797,434 bpd in 2013. The 110,164 crude carloads was the most ever in any quarter, the AAR said.

AAR also said 852,026 bpd of crude terminated at U.S. destinations on Class I railroads last year, which includes carloads that may have originated in Canada or on smaller railroads.

Phillips 66 has received permits for a loading facility in Mountrail County, North Dakota, that can handle up to 200,000 bpd on 700 acres of land. Chief Executive Officer Greg Garland said the project will likely handle about 160,000 bpd and have 300,000 barrels of storage. The company also has ordered another 500 new railcars, on top of 3,200 already received or on order, to largely move North Dakota Bakken crude to its refineries on the East and West coasts.

NuStar Energy LP also is planning a new rail-to-barge project for crude oil at its products terminal in Vancouver, Washington, where Tesoro Corp is seeking permits to build a much larger 360,000 bpd railport. NuStar has received permits to convert two products tanks to handle crude oil, and is planning to seek permits to build a rail offloading operation that would handle an average of 22,000 bpd that would be transported to West Coast refineries.


Crude movement by rail in 2013 was more than 10 percent of average U.S. output of 7.5 million bpd last year. The increase of 74 percent over 457,151 bpd in 2012 was higher than the 71 percent jump AAR had expected.

The East and West coasts, in particular, turned to rail to tap cheaper U.S. and Canadian crude with no major oil pipelines in operation, or even planned, to move inland crude to those markets.

Rail has evolved past a stopgap measure into an integral crude sourcing mode for refiners, adding flexibility to choose the best-priced crude from various shale and tight oil plays. Contracts are shorter, and they are not completely locked into specific types of crude moved from fixed points via pipeline.

Here is a rundown of more than 100 U.S. rail projects - both loading at production sites and unloading at refineries and terminals - that have emerged as U.S. shale and Canadian production grows:

Company Name Type Location State Capacity (bpd) Crude Status

Tesoro Corp Ref Anacortes WA 50,000 (refinery Bakken Operational 120,000 bpd)

U.S. Oil and Ref Tacoma WA 40,000 Bakken Operational Refining; TrailStone

Tesoro Corp Port Port of WA 120,000 initially, Bakken Approved by port, and Savage Vancouver expandable to 360,000 and awaiting OK from Services Canadian state governor following state environmental review; Expected to be operational in 2015


Phillips 66 Ref Ferndale WA 30,000 bpd capacity Bakken Permits approved; total; currently and operational in Q4 receiving 20,000 of Canadian 2014 N.American crude via mixed-freight shipments (refinery 100,000 bpd)

BP Plc Ref Cherry WA 70,000 (refinery Bakken Operational Point 225,000 bpd)

Royal Dutch Ref Anacortes WA N/A (Puget Sound Bakken, Awaiting permits Shell refinery 145,000 bpd) Canadian

Alon Energy Ref Bakersfield CA 13,000 each at Bakken, Permit approved USA Bakersfield oil Texas Sept. 9 2014 to refinery and Permian expand Bakersfield Paramount and Long Basin, offloading to
Beach asphalt Canadian 150,000 bpd, refineries (combined startup expected refineries' capacity in 3Q 2015,
70,000 bpd) refinery restart in early 2016 after upgrades to run more light crude; Permitted to offload up to 13,000 bpd each at Long Beach and Paramount, currently offloading 5,000 bpd at Long Beach

Plains All Term Bakersfield CA Phase I 65,000 to Bakken, Phase I 4Q 2014, American 70,000; Phase II can Niobrara, Phase II awaiting double volumes to up Eagle permits to test an to 140,000; pipelines Ford inactive pipeline can then move crude to increase to refineries in Los capacity Angeles and San Francisco areas

Valero Energy Ref Benicia CA 30,000 to 50,000 bpd Inland Seeking permits; Corp (132,000 bpd U.S. and delayed until 1Q refinery) Canadian 2015 from 4Q 2013 to allow for environmental assessment

Targa Term Stockton CA 70,000 Inland Seeking permits; Resources U.S. and no disclosed Partners Canadian target startup and date TRC Companies

Grays Harbor Port Aberdeen(Gr WA Up to 50,000 with a Bakken, Seeking permits Rail Terminal ays Harbor) 120-car unit-train Canadian (U.S. delivery every two Development days Group)


Westway Port Aberdeen(Gr WA About 26,300 bpd with Bakken, Seeking permits Terminals LLC ays Harbor) unit train delivery Canadian every three days (expands from 18 loading/unloading spots to 80)

Tesoro Ref Martinez CA 5,000-10,000; can Bakken Operational expand to 50,000; receives crude from Kinder Morgan Richmond operation (refinery 166,000 bpd)

Phillips 66 Ref Arroyo CA Extend rail Canadian Seeking permits; Grande infrastructure at public hearing Arroyo Grande to take postponed to up to 40,800 or five January 2015 from 80-car trains per April 2014 to week (Refinery allow public 120,200 bpd) comment on environmental review

Questar Corp Load Essex CA Considering rail Permian Pipeline segment loading facility at must be converted Essex to move crude to crude from via rail to 96-mile natural gas for pipeline in rail project to go Whitewater, CA, forward; if connected to West approved, Hynes crude-oil converted pipeline distribution system to start up in Long Beach, CA. mid-2016

WesPac Term Pittsburg CA Design for five Canadian, Seeking permits, Energy-Pittsb trains per week, Bakken, under urg LLC about 51,000 Permian environmental (WesPac review and Energy and soliciting public Oiltanking comment Holding Americas Inc)

Kinder Morgan Term Richmond CA 72,000; Converted to Bakken, Operational; Energy crude from ethanol in Canadian opponents' lawsuit Partners September 2013; can to halt receive 125-car unit operations and trains, 100-car require state trains ideal environmental review dismissed Sept 5, 2014

Global Term Clatskanie OR 28,600; expanding to Bakken Operational; on Partners LP handle up to 120,000 Aug. 19 2014 received state emissions permit allowing expansion

Interstate Load Sacramento CA 5,400, rail to truck U.S. Operational Oil Co inland crude


Carson Oil Load Sacramento CA 7,800, rail to truck, U.S. Received authority Inc crude and ethanol inland to construct crude crude loading infrastructure, seeking customer contract before starting construction

NuStar Energy Load Vancouver WA 22,000 on average U.S. Received permit to LP inland convert two crude products storage tanks at current terminal to crude; seeking permits to build rail-to-barge to start up in 2015

Company Name Type City State Capacity (bpd) Crude Status

Phillips 66, Ref Linden NJ 80,000-90,000 at Bakken Operational Global times 70,000 Partners (Railed to Albany, NY, then barged to 238,000 bpd Bayway refinery in Linden, New Jersey)

Plains All Term Yorktown VA 140,000 Bakken, Operational American Niobrara, Eagle Ford

PBF Energy Ref Delaware DE Up to 100,000 Bakken Operational; to City Bakken, 40,000 and expand Bakken Canadian (refinery Canadian; offloading to up to 182,200 bpd) some 130,000 Bakken by Bakken 3Q 2014, 80,000 barged to Canadian by 3Q 2014 160,000 bpd Paulsboro , NJ

Philadelphia Ref Philadelphia PA 160,000; plus Bakken Operational Energy another 30,000 Solutions via rail and barge combination (refinery 330,000 bpd)

Monroe Energy Ref Trainer PA Receiving up to Bakken Barge shipments 50,000 bpd via operational; barge once railed ramping up to Albany NY or capacity, expect to Eddystone PA. receive an average (refinery 185,000 of 70,000 bpd in bpd) 2014


Buckeye Term Albany NY 130,000 (rail to Bakken Operational Partners LP barge, onward to 300,000 bpd Irving Oil refiner in St. John, New Brunswick)

Sunoco Term Eagle Point NJ 40,000 (rail to Bakken Operational Logistics barge) Partners LP

Enbridge Inc Term Eddystone PA 80,000; to expand Bakken First phase (Near to 160,000 (rail operational, Philadelphia to barge) expansion in late ) 2014

Buckeye Term Perth Amboy NJ Capacity Bakken 3Q 2014 Partners LP undisclosed

Phillips 66 Ref Linden NJ 70,000 bpd Bakken Operational

Global Term New Windsor NY N/A; has proposed Bakken Seeking permits Partners adding rail infrastructure to load railed-in crude onto tankers and barges to move to East Coast refineries

Global Term Albany NY 160,000 bpd Bakken Operational Partners (includes long-term deal with Phillips 66

Targa Term Baltimore MD N/A N/A Seeking permits; no Resources target startup date disclosed


Monroe Ref Trainer PA 65,000, unloaded Bakken Monroe announced in Energy/Bridge at Enbridge's July 2014 it had r LLC Eddystone entered a 5-year facility, then deal with Bridger barged to the to supply Bakken to refinery the refinery

Company Name Type City State Capacity (bpd) Crude Status

Kinder Morgan Term Houston TX 210,000, expandable Cushing Operational Energy to 250,000 bpd; Oklahoma, Partners LP crude in by rail, West Texas, , out by barge and Bakken, Watco Cos pipeline; Canadian LLC; condensate in by long-term barge, out by rail trade agreement with Mercuria

Plains All Term St. James LA 140,000 Niobrara Operational American

Plains All Load Gardendale TX 25,000 Eagle Ford Operational American

Genesis Load Wink TX 100,000 Permian Operational Energy LP Basin

Cetane Energy Load Carlsbad NM 21,000; two unit Permian Operational; will LLC and Murex trains per week Basin expand to up to LLC 51,000 bpd or five unit trains per week by July 2015

RIO Hub, Load Loving NM 10,000; expandable Permian 10,000 bpd by Rangeland to more than Basin October 2014; Energy 100,000 expansion as per customer demand

Genesis Term Walnut Hill FL 75,000 Bakken, Operational Energy (near Mobile West Texas Bay AL)

Valero Ref St. James LA In 2013 was 100,000 Bakken Operational via Capline to 180,000 bpd Memphis, Tennessee, refinery; amount has declined by undisclosed amount

Sunoco Term Nederland TX 21,500 Bakken Operational Logistics

Alon Energy Ref Krotz LA 6,000 (refinery Inland U.S, Operational Springs 80,000 bpd) type depends on price

Genesis Term Natchez MS 85,000 Canadian Operational Energy

NuStar Energy Term St. James LA in talks with Canadian No announced producers to expand plans yet

NuStar Term St. James LA 70,000 at each Bakken Both operational Energy, EOG facility Resources Inc

Canadian Term Port of AL 75,000, up to 120 Canadian Operational National Mobile tank cars per day Railway (offload crude, and backhaul Arc Terminals condensate)

Petroplex Term St. James LA 70,000 (engineering Bakken, 1Q 2015 International Parish and design for bulk Canadian LLC, head of liquids terminal a consortium including unit backed by train) Macquarie Group and others

Valero Ref Port Arthur TX 70,000 bpd Canadian 4Q 2014 and other North American crudes

Valero Ref St. Charles LA 20,000 via rail, Canadian, Operational; 35,000 bpd via with room seeking permit to barge from to take increase rail Hartford, IL some inland offloading terminal (refinery U.S. capacity to 205,000 bpd) light-sweet 30,000

Genesis Term Maryland LA 75,000 (near Exxon Bakken, Operational Energy Mobil Corp's Eagle Ford, (Scenic 502,500 bpd Canadian Station) refinery in Baton Rouge)

GT Logistics Term Port Arthur TX 158,000 (rail to Bakken, Operational Omniport barge) Canadian Terminal

Jefferson Term Port of TX 70,000 (rail to Eagle Ford, Operational; Refinery LLC Beaumont barge) Bakken, expansion to (Orange Canadian capability to County offload up to Terminal) 300,000 bpd, including steam facilities to heat bitumen, slated for late 2014

Global Term Port Arthur TX 140,000 Canadian Awaiting permits Partners and to begin Kansas City construction; Southern waterborne terminal to have initial storage capacity of 340,000 barrels

Kinder Morgan Term Battleground TX 6,000 bpd N/A Phase I Energy Oil initially operational, Partners and Specialty (unloading for 12 expansion startup TransMontaign Terminal cars, expandable to in fourth quarter e Partners LP Company LLC 30 cars) 2014 (BOSTCO)

EOG Resources Load Harwood TX Average 12,000 at Eagle Ford Operational 98 shipments of about 45,000 barrels per train in 2012

EOG Resources Load Barnhart TX Average 3,000 at 24 Permian Operational shipments of about Basin 45,000 barrels per train in 2012

Navigator Load Big Spring TX 60,000 bpd Permian Targeted for Energy Basin fourth quarter Services 2014

Genesis Load Raceland LA 140,000 bpd Eagle Ford, End 2014 Energy Bakken, Canadian, Permian Basin, Niobrara

Gulf Gateway Term New Orleans LA 75,000, rail to Canadian, Operational; Terminal barge Eagle Ford expansion planned (Murex LLC for more Canadian and Bulk heavy oil Resources) offloading

LBC Tank Term Geismar LA 10,000 Canadian Expanding Terminals Industrial capacity to Complex, offload undiluted Sunshine bitumen

Texas Term Galveston TX 90,000, rail to Bakken, Operational nInternational barge Canadian Terminals

Atlas Oil Co Load La Feria TX 5,000 Eagle Ford Operational

Company Name Type City State Capacity (bpd) Crude Status

Enbridge Load Berthold ND 120,000 Bakken Operational

Plains All Load Manitou and ND 65,000 at Manitou; Bakken Operational; Van American Van Hook 65,000 at Van Hook Hook to 65,000 bpd by mid-2014

Musket Corp Load Dore ND 60,000 Bakken Operational

EOG Resources Load Stanley ND 65,000 Bakken Operational (Watco)

Hess Corp Load Tioga ND More than 60,000 Bakken Operational (Watco)

COLT hub, Load Epping ND 160,000 Bakken Operational Crestwood Midstream Partners

Dakota Plains Load New Town ND 80,000 Bakken Operational Holdings

Lario Load Bakken Oil ND 100,000 expandable Bakken Operational Logistics Express, to 200,000 near Dickinson

Savage Load Trenton ND 175,000 Bakken Operational Services

Great Northern Load Fryburg ND 70,000 Bakken Operational Midstream LLC

Global Basin Load Columbus ND 160,000 Bakken Operational LP, Basin and Beulah Transload LLC

Northstar Load Fairview MT 100,000 (Q1 2014) Bakken Operational Transloading

Delek U.S. Ref El Dorado AR 25,000 light U.S. Inland Startup in early Holdings or 12,000 Canadian. U.S., 2014 Can also access Canadian 20,000 bpd of light crude offloading at a third-party facility adjacent to the refinery (refinery 80,000 bpd)

HollyFrontier Ref Artesia NM 70,000 (refinery WTS, WTI, Operational Corp 105,000 bpd) Canadian

Marquis Energy Term Hayti MS 75,000 (rail to Bakken, Operational; to Miss. barge) Canadian increase to 150,000

Indigo Term Osceola AR 140,000 (rail to Bakken, Startup in late Resources Miss. barge) Canadian 2014

SEACOR Term Sauget IL 65,000 (rail to Bakken, Operational Holdings Inc (Gateway Miss. barge) Canadian Terminals)

Savage Term Lordstown OH N/A (transloading Utica, when Awaiting Services at Ohio Commerce production takers Center, expanding ramps up for unit trains)

Kinder Morgan, Term Stroud OK 65,000 bpd, Bakken Operational Watco offloading EOG Companies output crude to Hawthorn Pipeline

Buckeye Load Chicago IL Crude arrives via Bakken, Operational Partners pipeline, loaded on Canadian railcars to go to West, East and Gulf coasts; capacity undisclosed

EnLink Load Frazeysburg OH 24,000, light oil Utica Operational Midstream condensate and various grades of (Black Run crude Rail Terminal)

Enbridge Term Flanagan IL 140,000 Canadian If approved, as early as 1Q 2016

PBF Energy Ref Toledo OH Approx 70,000 Bakken, Study to build Canadian offloading facility at refinery under way; truck rack can take up to 16,000 bpd, can receive unit trains via third party

Dakota Gold Load Staney ND 70,000 Bakken Construction to Transfer start by late 2014, high-speed rail loading available by 2H 2015

Phillips 66 Load Mountrail ND 200,000 Bakken, Permitted to County near Canadian build new Stanley rail-loading facility, expect to handle about 160,000 bpd; if company moves forward, startup before end 2015

Company Name Type City State Capacity (bpd) Crude Status

Plains All Load Carr, Tampa CO 15,000 at Carr, Niobrara Both operational; American 35,000 at Tampa; Carr to expand both to expand to by 1H 2015 68,000 (ships to CA, LA) Musket Corp Load Windsor CO Initially 16,000 Niobrara Operational expandable to more than 30,000

Powder River Load Douglas WY 120,000 Bakken, Operational Basin Niobrara, Industrial Canadian Complex LLC, 50/50 joint venture of Crestwood Midstream Partners and Enersco Midstream LLC, subsidiary of Twin Eagle Resource Management

Eighty-Eight Load Guernsey WY 80,000 Bakken, Operational Oil LLC; Niobrara, operated by Canadian, Strobel Big Horn Starostka Basin, Transfer Wyoming

Cogent Energy Load Caspar WY 80,000 Niobrara 2014 Solutions LLC and Granite Peak Development LLC

Savage Load Price, Salt UT 9,000 at each Uinta Operational Services Lake City terminal Basin

United Energy Load 7 sites in More than 68,000 Bakken, Operational Trading ND, CA, CO, Niobrara, WY, TX Eagle Ford, Permian Pronghorn, Load Douglas WY 70,000 Niobrara Operational Genesis Energy

Price River Load Wellington UT 15,000, expandable Uinta Operational Terminal; to 40,000, and Global One shipped first unit Transport/Watc train in February o 2014

Meritage Load Wright WY 70,000; to expand Niobrara Operational; Midstream/Arch to 120,000 loaded first Coal (Black 70,000-barrel Thunder unit train in Terminal) June 2014; expansion slated for early 2015 Atlas Oil Co Load Evans CO 5,000 minimum Niobrara Operational; can expand to unit-train capability as production ramps up

Sources: Company filings, presentations and announcements; North Dakota Pipeline Authority
Reporting by Kristen Hays

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