Tuesday, April 23, 2013

Tesoro, Savage form JV to build and operate port-served crude-by rail facility

Tesoro Refining & Marketing Company LLC and Savage Companies have formed a joint venture to develop and operate a 120,000 barrel-per-day (bpd) crude-by-rail unloading and marine loading facility at the Port of Vancouver USA in Washington state, subject to approval.

With access to rail and existing marine infrastructure, the Port of Vancouver USA is positioned to serve as a hub for the distribution of North American crude oil to West Coast refining centers. Tesoro and Savage have already operated in close partnership for almost ten years on the West Coast.

The Tesoro-Savage Joint Venture will own the crude unloading and marine loading facilities and will enter into a land lease agreement with the port for an initial period of 10 years. Savage will oversee and manage the design, construction and operation of the facility on the joint venture's behalf. The facility is expected to be operational in 2014 and will represent an investment of approximately $75 to $100 million and will be designed to handle an estimated initial volume of 120,000 bpd with potential near-term expansion capability to 280,000 bpd.

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