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PBF Energy, Genesis Energy address unit train facility needs for crude oil


PBF Energy Inc. yesterday announced the completion of a second rail unloading facility for crude oil at its Delaware City, Del., refinery.

The first unit train of Bakken Shale crude oil is expected to discharge at the facility later this week, and 17 more unit trains are scheduled to arrive in the next two weeks. The Delaware City rail facilities now are capable of discharging 110,000 barrels per day, including 40,000 barrels of heavy crude and 70,000 barrels of light crude, PBF Energy officials said in a prepared statement.

The company also announced plans to increase the discharge capacity of its heavy crude rail unloading facility in Delaware City to 80,000 barrels per day to accommodate more Canadian heavy crude. Slated for completion in the fourth quarter, the $50 million project will add an additional 40,000 barrels per day of unloading capacity, PBF Energy officials said.

In addition, the company announced it entered into agreements to acquire an additional 2,000 coiled and insulated rail cars designed to handle heavy crude, and 500 general purpose cars. The new coiled and insulated cars — which will boost PBF Energy's fleet of owned or leased cars to 3,600 — are projected for delivery beginning in 2014 and ending in first-quarter 2015, while the general purpose cars are scheduled for delivery in 2013.

Meanwhile, Genesis Energy L.P. yesterday announced plans to spend about $125 million to improve existing assets and develop new infrastructure in Louisiana to connect with ExxonMobil Corp.’s Baton Rouge refinery, including a new unit train facility for unloading crude oil.

The project calls for improving a terminal in Port Hudson, La., building an 18-mile, 20-inch-diameter crude oil pipeline connecting Port Hudson to the Baton Rouge Maryland Terminal and constructing a crude oil unit train facility at the Baton Rouge terminal.

Genesis Energy entered into agreements with ExxonMobil that grant Genesis a land lease at the Baton Rouge terminal and provide preferential rights for throughput at the facilities.

Construction is scheduled to begin early this year. The Port Hudson upgrades and new crude oil pipeline are slated for completion by year's end, and Baton Rouge terminal work is scheduled for completion in second-quarter 2014.

"This project positions Genesis as an efficient conduit for crude oil supply and logistics in the region," said Genesis Energy Chief Executive Officer Grant Sims in a prepared statement.