Tesoro Corporation and
Savage Companies have announced the formation of a joint venture between
Tesoro Refining & Marketing Company LLC, a subsidiary of Tesoro, and Savage to develop and operate a new 120,000 barrel-per-day (bpd) crude-by-rail unloading and marine loading facility at the
Port of Vancouver, Washington.
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 ten years, subject to approval by regulatory agencies and Port Commissioners. 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 with an investment cost of between US$75 and US$100 million. It will be designed to handle an estimated initial volume of 120,000 barrels per day (bpd) with potential near-term expansion to 280,000 bpd.
Commenting on the news,
Greg Goff, President and CEO of Tesoro, said: "This is an exciting project, and we are pleased to be partnering again with Savage. Building upon the recent success of the rail unloading facility at our Anacortes, Washington refinery, where we have been delivering Mid-Continent crude oil via unit train in an environmentally sound and cost-effective manner, this project is the ideal next step for Tesoro as we drive additional feedstock cost advantage to the remaining refineries in our West Coast system."
Kirk Aubry, President and COO of Savage, remarked: "We are looking forward to bringing crude oil destination services to the Port of Vancouver. This partnership solidifies Savage's position as a leading provider of services in the crude-by-rail market to refiners, producers and marketers. More importantly, our collaboration with Tesoro will ensure that the facility is safe, productive and environmentally responsible."
"The Tesoro-Savage Joint Venture is an ideal fit for what's necessary to execute this project," said
Todd Coleman, Chief Executive Officer of the Port of Vancouver. "This project aligns with our strategic goals and our mission to provide economic benefits to our community through leadership, stewardship and partnership in marine and industrial development. The port will benefit from Tesoro's and Savage's shared expertise, and we look forward to working with them to help support the local economy by further diversifying our cargo handling capabilities."
