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Wednesday, January 09, 2013
Global Partners, Canadian Pacific to transport Bakken crude for Phillips 66
Global Partners L.P. obtained a five-year contract from Phillips 66 under which Global will provide rail transloading, logistics and transportation services to deliver crude oil from the Bakken Shale in North Dakota to Phillips 66's Bayway, N.J., refinery. Phillips 66 expects to receive about 91 million barrels of crude oil over the contract term, equating to 50,000 barrels per day.
The Bakken crude will be transloaded at Basin Transload L.L.C.'s North Dakota rail facilities. Global has agreed to purchase a 60 percent interest in Basin Transload via a transaction that's expected to close in the first quarter. Per a continuing partnership with Canadian Pacific, crude oil will be transported by the Class I from the Bakken to Global's Albany, N.Y., terminal, Global officials said in a prepared statement.
The Albany terminal's capacity to move product by rail currently stands at 160,000 barrels a day. Later this month, "we expect to move an average of more than 100,000 barrels a day by rail through [the] facility," said Global President and Chief Executive Officer Eric Slifka.
The direct rail service from North Dakota to the Northeast "demonstrates the advantages of CP's strategic rail network and experience in moving energy products," said CP Executive Vice President and Chief Marketing Officer Jane O'Hagan.
"CP is the only North American railroad to serve the Bakken Formation, the Alberta Industrial Heartland and other energy formations in the United States and Canada directly to the Northeast U.S.," she said.
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