Phillips 66 inks $1bn Bakken rail deal

Rail: more Bakken crude to be shipped by rail

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By News wires

 09 January 2013 18:04 GMT

Phillips 66 has signed a five-year commitment to ship North Dakotan crude oil by rail to its New Jersey refinery, making an estimated $1 billion bet that North American crude will remain cheap.

Under the terms of the contract to use Global Partner’s loading facilities and terminals, Phillips 66 will receive some 50,000 barrel-per-day of Bakken crude oil at its 238,000 bpd Bayway refinery in Linden, New Jersey, on a take-or-pay basis, equal to 91 million barrels over the five-year period.

Global said it will load the Bakken crude shipments at Basin Transload’s rail facilities in North Dakota and ship it to its terminal in Albany, New York, on Canadian Pacific's rail network, Reuters reported.

The Houston, Texas-based refiner's commitment only covers a fraction of the cost of moving oil by rail. Phillips must…

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