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7/22/2014



Rail News: Rail Industry Trends

Bridger to supply Bakken crude to Monroe Energy's Pennsylvania refinery


Delta Air Lines subsidiary Monroe Energy L.L.C. has entered into a five-year agreement with Bridger L.L.C. to supply 65,000 barrels of domestic crude oil daily to Monroe Energy's refinery in Trainer, Pa.

Accounting for about one-third of the crude refined daily at the facility, the pact is a significant step in Delta's strategy to manage jet fuel costs — the airline's No. 1 expense, Monroe Energy officials said in a press release. Lower-cost crude from the Bakken Shale in North Dakota will replace more expensive crude that historically has been shipped to the refinery from overseas, they said.

A logistics service provider, Bridger expects its rail, truck, terminals/pipelines, maritime and marketing divisions to play a role in serving Monroe Energy. Bridger recently committed $200 million to acquire 1,300 new tank cars that exceed current tank-car safety standards. The cars will be among a mix of assets used to alleviate infrastructure constraints on the East Coast and transport crude to the Trainer refinery, Bridger  officials said.

"This transaction reflects our commitment to deploy midstream assets to link upstream domestic producers with downstream refineries to further promote U.S. energy independence," said Bridger President and Chief Executive Officer Julio Rios II.



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