terminal news
Eighty-Eight Oil plans flexible crude loading terminal
Global Partners to buy crude oil facility
Eighty-Eight Oil (EEO), a private crude oil marketing and logistics company, has announced plans to build and operate a unit train facility on BNSF Railway’s mainline, close to the crude oil pipeline hub in Guernsey, Wyoming. The new train terminal will be connected to EEO’s existing Guernseybased crude oil storage terminal, which has a capacity of 2 million barrels and currently receives crude oil from the Butte, Belle Fourche, Platte and Rocky Mountain pipelines. The loading unit train terminal will also feature unloading infrastructure and will be designed to handle a variety of crude types including those from the Williston Basin (Bakken), the Power River Basin (Niobrara), Southwest Wyoming, Big Horn Basin and Canada.
Terminal network owner Global Partners has signed an agreement to acquire an Oregon-based crude oil and ethanol facility from Cascade Kelly Holdings for approximately $95 million (€70 million). Assets included in the transaction are 200,000 barrels of storage capacity, a rail transloading facility served by the BNSF Railway, a deepwater marine terminal and a 1,200ft dock, in addition to an ethanol plant. Speaking about the deal, Eric Alifka, Global’s president and CEO, comments: ‘This transaction capitalises on our advantaged logistics and enables us to supply cost-competitive crude and ethanol to refiners and customers on the West Coast. This facility also creates a link between the Western Canadian Sedimentary Basin and Pacific refiners. These new assets increase our capability to transport crude from the US and Canadian mid-continent and extend our virtual pipeline to the West.’ The company’s purchase of Cascade Kelly has been approved by the board of directors of the partnership’s general partner, Global GP, and is subject to regulatory approvals among other closing conditions. The acquisition is due to be finalised by the end of this quarter. In a statement, Global said it also expects to close its $80 million investment of a 60% stake in Basin Transload early this year.
Jerry Herz, superintendent of EEO, says this ability to handle multiple crude types will increase the terminal’s ‘long-term viability’. Construction on the new terminal is expected to be complete by the end of this year. It will feature three rail loop tracks and necessary tank storage for the loading operations. EEO says initial rail loading capacity will be approximately 80,000 barrels a day with expansion capability. Dave Garin, BNSF group VP, comments: ‘As demand continues to rise, rail has stepped up to provide a more flexible, long-term and economical option to ship crude oil to destination markets throughout the east, west and Gulf coasts and along the Mississippi River.’
The unit train facility will be built on BNSF Railway’s mainline
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March/April 2013 • TANK STORAGE