Boston, MA 09/04/2014 (wallstreetpr) – Phillips 66 (NYSE:PSX) is now adding more railcars to increase their daily capacity of North American crude oil from its refineries. As per the Company’s CEO, Greg Garland, statement, Phillips 66 plans to increase the transport capacity to a level of 185,000 barrels per day (bpd) from Canada and North Dakota’s Bakken shale to its refineries in East and West coasts.
The Company already bought 3,200 railcars and ordered additional 500 railcars so to make the fleet size up to 3,700 railcars by 2014 end.
Recently, Phillips 66 (NYSE:PSX)’s Bayway refinery in Linden, New Jersey, which has a capacity of 238,000-bpd, received its first train to carry the crude oil from its new plant. Garland said that the facility can transport up to 70,000 bpd along with ~75,000 bpd from its joint venture unit (Global Partners).
In addition, the refiner expects to start the offloading system capacity of 30,000-bpd from its 100,000-bpd capacity refinery at Ferndale, Washington by 4Q2014.
The refiner disappointed over the approval process of rail offloading projects in California as it takes more time to get the approval from its refinery at Santa Maria, California. The project is one of several rail projects that require more time and scrutiny for the approval, and the local commission is extending the approval process.
As per Phillips 66 (NYSE:PSX)’s report, the Santa Maria and Rodeo refinery in California together have the capacity of 120,200 bpd but does not have proper connectivity to transport light crude oil from Bakken shale. The existing rail projects would only bring 40,000 bpd of heavy oil from the refinery that produced in Canada.
The refiner remains optimistic and anticipates the approval for its railroad projects, as per the statement of Garland. On approval, the project will connect most refineries in the proposed corridor and also increase the offloading capacity for the refiner.