U.S. crude-by-rail projects; Westway, Imperium projects face public scrutiny

(Updates Westway Terminal, Imperium Renewables projects) HOUSTON, Aug 31 (Reuters) - U.S. oil producers, refiners and logistics companies are deep into the crude-by-rail movement with dozens of projects throughout the United States, although crude movements via rail retreated to less than 900,000 barrels per day in the first half of 2015 from more than 1 million bpd in the second half of 2014. That decline came amid tight spreads between U.S. crude and Brent prices, leading coastal refiners to take imports because a narrow spread squashes economic advantages of oil-by-rail. The East and West coasts, in particular, have turned to rail to tap cheaper U.S. and Canadian heavy crude with no major oil pipelines in operation to move inland crude to those markets. U.S. Gulf Coast refineries built to run heavy oil also receive Canadian crude via rail, as well as domestic oil. But some, mainly on the West Coast, have faced lengthy delays and opposition. Washington State environmental regulators have released draft environmental impact statements for two oil-by-rail projects at the Port of Gray's Harbor, about 111 miles (178 km) west of Seattle. The state will take public comments about the projects through the end of October, and evaluate that input when considering whether to approve permits for the projects. Westway Terminal aims to add crude oil handling to its methanol distribution terminal at the port in Hoquiam. The company wants to build five 200,000-barrel storage tanks and add pumps, pipelines and rail track so crude can be railed in, stored and moved out via vessel to refineries on the U.S. West Coast and potentially abroad. Imperium Terminal Services, adjacent to Westway, wants to expand its biodiesel, petroleum diesel, vegetable oil and methanol terminal to handle crude, ethanol, naphtha, gasoline, jet fuel and other liquids. The company would build up to nine 80,000-barrel storage tanks, extend rail lines and move railed-in crude to vessels. Like Westway, Imperium envisions shipping railed-in crude to West Coast refineries and potentially abroad. Both projects were initially expected to start up in 2013, but faced delays as opposition grew and state requirements for a comprehensive environmental review. Proliferation of oil-by-train shipments started more than five years ago to get oil to markets as pipeline infrastructure lagged booming U.S. and Canadian crude production. The Association of American Railroads said 871,456 bpd originated on top U.S. railroads in the second quarter of 2015, down 2.8 percent from the first quarter this year and down more than 15 percent from the peak of 1.02 million bpd in the third quarter of 2014. Oil-by-rail movements started to retreat in the fourth quarter last year as a global supply glut sent oil prices spiraling. Discounts of domestic and Canadian heavy crudes to U.S. benchmark West Texas Intermediate and London's Brent narrowed as well, prompting coastal refiners to take more imports with spreads too thin to more than absorb extra transportation costs of rail. Oil moved by rail in the second quarter was 9.17 percent of 9.5 million bpd, the U.S. Energy Information Administration's estimate of average U.S. output in the first half of 2015 Once seen as a stopgap to move crude until pipelines get built, rail has become part of the transportation mix as it adds flexibility for refiners to choose the best-priced crude from shale and tight oil plays rather than just rely on pipelines. Contracts are shorter, and they are not locked into specific types of crude moved from fixed points via pipeline. Here is a rundown of more than 100 U.S. rail projects - both loading at production sites and unloading at refineries and terminals - that have emerged as U.S. shale and Canadian production has grown: WEST COAST Company Name Type Location State Capacity Crude Status (bpd) Tesoro Corp Ref Anacortes WA 50,000 Bakken Operational (refinery 120,000 bpd) U.S. Oil and Ref Tacoma WA 40,000 Bakken Operational Refining; TrailStone Tesoro Corp Port Port of WA 360,000 Bakken, Approved by and Savage Vancouver Canadian and port, awaiting Services inland U.S. OK from state governor following state environmental review; had expected to be operational by end 2015, but review process will push governer's consideraqtion of approval to 2016; U.S. Army Corps of Engineers on June 4, 2015 said it would seek public review of Tesoro's permit application to upgrade dock infrastructure Phillips 66 Ref Ferndale WA 30,000 bpd Bakken and Operational capacity Canadian total; currently receiving 20,000 of N.American crude via mixed-freigh t shipments (refinery 100,000 bpd) BP Plc Ref Cherry Point WA 70,000 Bakken Operational (refinery 225,000 bpd) Royal Dutch Ref Anacortes WA N/A (Puget Bakken, Awaiting Shell Sound Canadian permits; on Feb. refinery 24, 2015, a 145,000 bpd) Skagit County hearing examiner ordered a lengthy environmental review, which can take a year or more Alon Energy Ref Bakersfield CA 13,000 each Bakken, Texas Permit approved USA ; at Permian Basin, Sept. 9 2014 to May 2015 Bakersfield Canadian expand Delek U.S. oil refinery Bakersfield Holdings and offloading to Paramount 150,000 bpd; in acquired 48 and Long February 2015 percent of Beach Alon said Alon asphalt startup was refineries slated for 2016, (combined delayed form refineries' late 2015; in capacity August 2015 said 70,000 bpd) startup slowed further as narrow crude differentials have thinned crude by rail movements, engineering to be done, but will hold off on further work with no new date given; refinery restart about a year after rail startup if economically feasible to upgrade to run more light crude; Permitted to offload up to 13,000 bpd each at Long Beach and Paramount, currently offloading 5,000 bpd at Long Beach; opponents suing Kern County officials to rescind permit; Delek's acquisition of 48 percent of Alon USA Energy to close in May 2015 Plains All Term Bakersfield CA Phase I Bakken, Phase I November American 65,000 to Niobrara, 2014, Phase II 70,000; Eagle Ford awaiting permits Phase II can to test an double inactive volumes to pipeline to up to increase 140,000; capacity; pipelines environmental can then groups in move crude January 2015 to sued to shut refineries down the project in Los and force an Angeles and environmental San review Francisco areas Valero Energy Ref Benicia CA 30,000 to Inland U.S. Seeking permits; Corp 50,000 bpd and Canadian delayed until (132,000 bpd early 2016 from refinery) 1Q 2015 to accommodate lengthy environmental review; had already been delayed from 4Q 2013 Targa Term Stockton CA 70,000 Inland U.S. Seeking permits; Resources and Canadian no disclosed Partners target startup and date TRC Companies Grays Harbor Port Aberdeen(Gra WA Up to 50,000 Bakken, Seeking permits; Rail Terminal ys Harbor) Canadian environmental (U.S. review ongoing Development Group) Westway Port Aberdeen(Gra WA About 26,300 Bakken, Seeking permits Terminals LLC ys Harbor) bpd with Canadian to add crude by unit train rail capability delivery to current every three methanol days terminal; (expands Washington from 18 Department of loading/unlo Ecology released ading spots draft to 80) environmental impact statement Aug 31, 2015; accepting public comment through October. Startup targeted for 2017 Tesoro Ref Martinez CA 5,000-10,000 Bakken Operational ; can expand to 50,000; receives crude from Kinder Morgan Richmond operation (refinery 166,000 bpd) Phillips 66 Ref Arroyo CA Extend rail Canadian Seeking Grande infrastructu permits; public re at Arroyo hearing Grande to postponed to 2H take up to 2015 from April 40,800 or 2014 to examine five 80-car public comment trains per on revised week environmental (Refinery review 120,200 bpd) Questar Corp Load Essex CA Considering Permian Pipeline segment and 120,000 bpd must be Spectra rail converted to Energy Corp offloading crude from facility at natural gas for Essex to rail project to move crude go forward; in to 96-mile August 2015 said pipeline in Questar has not Whitewater, been able to CA, find a suitable connected to site for a rail West Hynes terminal, so crude project delayed distribution beyond 2017; system in Questar and Long Beach, Spectra may CA. exclude rail from the project and convert the entire pipeline to oil service, which may require building a new 110-mile pipeline in California; may also sell Southern Trails pipeline; decision expected by end 2015 WesPac Term Pittsburg CA Design for Canadian, In March 2015 Energy-Pittsb five trains Bakken, re-submitted urg LLC per week, Permian permit (WesPac about 51,000 applications to Energy and overhaul its Oiltanking marine terminal Holding that excluded Americas Inc) any rail provision after undergoing repeated environmental reviews for about two years; if approved, project will move crude only via pipeline or vessel. Kinder Morgan Term Richmond CA 72,000; Bakken, Operational; Inc Converted to Canadian opponents' crude from lawsuit to halt ethanol in operations and September require state 2013; can environmental receive review dismissed 125-car unit Sept 5, 2014 trains, 100-car trains ideal Global Term Clatskanie OR Up to 3,261; Bakken Operational; Partners LP expanding to on Aug. 19 2014 handle up to received state 120,000 emissions permit allowing expansion; startup expected late 2015-early 2016; received U.S. Army Corps of Engineers permit to upgrade a dock to handle Panamax-sized vessels, work slated to start in 4Q 2015 pending completion of design Interstate Load Sacramento CA 5,400, rail U.S. inland Ceased crude oil Oil Co to truck crude operations in November 2014, resumed ethanol-only unloading; company surrendered permit approving crude unloading after environmental groups sued to stop the operation Carson Oil Load Sacramento CA 7,800, rail U.S. inland Received Inc to truck, crude authority to crude and construct crude ethanol loading infrastructure, seeking customer contract before starting construction NuStar Energy Load Vancouver WA 22,000 on U.S. inland Received permit LP average crude to convert two products storage tanks at current terminal to crude; seeking permits to build rail-to-barge to start up in 2015 Arc Logistics Term Portland OR 18,000 Uinta Operational Partners Targa Term Tacoma WA N/A; Inland U.S., Ended five-year Resources manifest Canadian deal after one Partners could restart for more customers if expand to handle 70,000 bpd Imperium Port Hoquiam, WA Up to Inland U.S. Existing Renewables Port of 140,000 biodiesel Grays Harbor facility seeking permits to add rail capability for crude, ethanol, naphtha, gasoline, jet fuel, kerosene, fuel oil and other liquids; Washington Department of Ecology released draft environmental impact statement Aug 31, 2015; accepting public comment through October. Startup targeted for 2017 EAST COAST Company Name Type City State Capacity Crude Status (bpd) Phillips 66, Ref Linden NJ 80,000-90,00 Bakken Operational Global 00 at times Partners 70,000 (Railed to Albany, NY, then barged to 238,000 bpd Bayway refinery in Linden, New Jersey) Plains All Term Yorktown VA 140,000 Bakken, Operational American Niobrara, Eagle Ford PBF Energy Ref Delaware DE Up to Bakken and Operational City 130,000 Canadian; up Bakken, to 45,000 80,000 Bakken barged Canadian to 160,000 (refinery bpd 182,200 bpd) Paulsboro, NJ Philadelphia Ref Philadelphia PA 160,000; Bakken Operational Energy plus another Solutions 30,000 via rail and barge combination (refinery 330,000 bpd) Buckeye Term Albany NY 130,000 Bakken Operational Partners LP (rail to barge, onward to 300,000 bpd Irving Oil refiner in St. John, New Brunswick) Sunoco Term Eagle Point NJ 40,000 (rail Bakken Operational Logistics to barge) Partners LP Enbridge Inc Term Eddystone PA 80,000; can Bakken Operational expand to 160,000 (rail to barge) Buckeye Term Perth Amboy NJ 40,000 Bakken Operational; in Partners LP talks to position facility to handle Canadian heavy crude, possibly for export; exploring options to handle natural gas liquids as well Phillips 66 Ref Linden NJ 70,000 bpd Bakken Operational Global Term New Windsor NY 88,000; had Bakken Withdrew permit Partners proposed application in adding rail October 2014 infrastructu without re to load explanation railed-in crude onto tankers and barges to move to East Coast refineries Global Term Albany NY 160,000 bpd Bakken Operational; Partners (includes seeking permits long-term to add boilers deal with and other Phillips 66 equipment to handle bitumen, or undiluted Canadian heavy crude, project to undergo environmental review Targa Term Baltimore MD 25,000 N/A Permit has Resources preliminary approval from Maryland regulators; final approval pending Monroe Ref Trainer PA 65,000, Bakken Monroe announced Energy/Bridge unloaded at in July 2014 it r LLC Enbridge's had entered a Eddystone 5-year deal with facility, Bridger to supply then barged Bakken to the to the refinery refinery GULF COAST Company Name Type City State Capacity (bpd) Crude Status Kinder Term Houston TX 210,000, Cushing Operational Morgan, Watco expandable to Oklahoma, Cos LLC; 250,000 bpd; West Texas, long-term crude in by Bakken, trade rail, out by Canadian agreement barge and with Mercuria pipeline; condensate in by barge, out by rail Plains All Term St. James LA 140,000 Niobrara Operational; American adding capability to receive Canadian heavy crude by 3Q 2015 to coincide with the company's new rail loading operation to start up at the same time in Kerrobert, Canada Plains All Load Gardendale TX 25,000 Eagle Ford Operational American Hub near Cotulla Genesis Load Wink TX 100,000 Permian Operational Energy LP Basin Cetane Energy Load Carlsbad NM 21,000; two Permian Operational; LLC and Murex unit trains per Basin will expand to LLC week up to 51,000 bpd or five unit trains per week by July 2015 RIO Hub, Load Loving NM 10,000; Permian 10,000 bpd Rangeland expandable to Basin by October 2014; Energy more than expansion as per 100,000 customer demand Genesis Term Walnut Hill FL 75,000 Bakken, Operational Energy (near West Texas Mobile Bay AL) Valero Ref St. James LA In 2013 was Bakken Operational 100,000 via Capline to 180,000 bpd Memphis, Tennessee, refinery; amount has declined by undisclosed amount Sunoco Term Nederland TX 21,500 Bakken Operational Logistics Alon Energy Ref Krotz LA 6,000 (refinery Inland U.S, Operational Springs 80,000 bpd) type depends on price Genesis Term Natchez MS 85,000 Canadian Operational Energy NuStar Energy Term St. James LA Two unit train Bakken can Operational; in facilities and handle talks to take a manifest rail Canadian Canadian crude facility, shipments; most combined storage for 200,000 light crude, but have four tanks capable of fuel oil or heated crude storage Canadian Term Port of AL 75,000, up to Canadian Operational National Mobile 120 tank cars Railway per day and (offload crude, Arc Terminals backhaul condensate) Petroplex Term St. James LA 70,000 Bakken, 1Q 2016 International Parish (engineering Canadian LLC, head of and design for a consortium bulk liquids backed by terminal Macquarie including unit Group train) and others Valero Ref Port Arthur TX 70,000 bpd Canadian Operational and other North American crudes Valero Ref St. Charles LA 20,000 via Canadian, Operational; rail, 35,000 with room seeking permit bpd via barge to take to increase rail from Hartford, some inland offloading IL terminal U.S. capacity to (refinery light-sweet 30,000 205,000 bpd) Genesis Term Maryland LA 75,000 (near Bakken, Operational Energy Exxon Mobil Eagle Ford, (Scenic Corp's Canadian Station) 502,500 bpd refinery in Baton Rouge) GT Logistics Term Port Arthur TX 158,000 (rail Bakken, Operational Omniport to barge) Canadian Terminal Jefferson Term Port of TX 70,000 (rail to Eagle Ford, Operational; Energy Beaumont barge) Bakken, ramping up to Transload (Orange Canadian 220,000 bpd; Railport County started up Terminal) heating facilities for railbit crude in January 2015 Global Term Port Arthur TX 140,000 Canadian Awaiting permits Partners and to begin Kansas City construction; Southern waterborne terminal to have initial storage capacity of 340,000 barrels; expect startup 1Q 2017 Kinder Morgan Term Battlegroun TX 6,000 bpd N/A Operational and d Oil initially TransMontaign Specialty (unloading for e Partners LP Terminal 12 cars, Company LLC expandable to (BOSTCO) 30 cars) EOG Resources Load Harwood, TX Average 10,900 Eagle Ford, Operational Barnhart from 89 Permian and Fort shipments of Worth about 45,000 barrels per train in 2013 from all three facilities Genesis Load Raceland LA 140,000 bpd Eagle Ford, 4Q 2015 Energy Bakken, Canadian, Permian Basin, Niobrara Gulf Gateway Term New Orleans LA 75,000, rail to Canadian, Operational; Terminal barge Eagle Ford expansion (Murex LLC planned for more and Bulk Canadian heavy Resources) oil offloading LBC Tank Term Geismar LA 10,000 Canadian Expanding Terminals Industrial capacity to Complex, offload Sunshine undiluted bitumen Texas Term Galveston TX 90,000, rail to Inland Operational International barge or ship U.S., Terminals Canadian Atlas Oil Co Load La Feria TX 5,000 Eagle Ford Operational Buckeye Texas Term, Corpus TX At least 70,000 Inland Under Partners load Christi U.S., consideration; (Buckeye Canadian may build unit Partners and train loading Tragifura) and offloading capability near terminal, could receive heavy Canadian and send naphtha as diluent back to Canada NGL Energy Load Milan, near NM Initially two San Juan 3Q 2015; will Partners Albuquerque unit trans per Basin include 240,000 week, about barrels of 20,400 storage Arc Logistics Term Chickasaw AL 9,000 U.S. inland Operational; bpd Partners and includes Canadian distillates, fuel oil and crude tall oil Arc Logistics Term Saraland AL 14,000 U.S. Inland Operational Partners and Canadian MIDCONTINENT Company Name Type City State Capacity (bpd) Crude Status Enbridge Load Berthold ND 120,000 Bakken Operational Plains All Load Manitou ND 65,000 at Bakken Operational American and Van Manitou; 65,000 Hook at Van Hook Musket Corp Load Dore ND 60,000 Bakken Operational EOG Resources Load Stanley ND 65,000 Bakken Operational (Watco) Hess Corp Load Tioga ND 140,000 Bakken Operational (Watco) COLT hub, Load Epping ND 160,000 Bakken Operational Crestwood Midstream Partners Dakota Plains Load New Town ND 80,000 Bakken Operational Holdings Lario Load Near ND 100,000 Bakken Operational Logistics, Dickinson expandable to Bakken Oil 200,000 Express Savage Load Trenton ND 175,000 Bakken Operational; in Services July 2015 laid off 12 employees and halving loading in light of lower oil prices Great Load Fryburg ND 70,000 Bakken Operational Northern Midstream LLC Global Basin Load Columbus ND 160,000 Bakken Operational LP, Basin and Beulah Transload LLC Northstar Load McKenzie ND 100,000 Bakken Crude loading to Transloading County start up in 1H 2015; inbound loading for frac sand, construction materials operational December 2014 Delek U.S. Ref El Dorado AR 25,000 light Inland Operational Holdings U.S. or 12,000 U.S., Canadian. Can Canadian also access 20,000 bpd of light crude offloading at a third-party facility adjacent to the refinery (refinery 80,000 bpd) HollyFrontier Ref Artesia NM 70,000 WTS, WTI, Operational Corp (refinery Canadian 105,000 bpd) Marquis Term Hayti MS 75,000 (rail to Bakken, Operational; to Energy Miss. barge) Canadian increase to 150,000 Indigo Term Osceola AR 140,000 (rail Bakken, Startup in late Resources to Miss. barge) Canadian 2014 SEACOR Term Sauget IL 65,000 (rail to Bakken, Operational Holdings Inc (Gateway Miss. barge) Canadian Terminals) Savage Term Lordstown OH N/A Utica, when Awaiting Services (transloading production takers at Ohio ramps up Commerce Center, expanding for unit trains) Kinder Term Stroud OK 65,000 bpd, Bakken Operational Morgan, Watco offloading EOG Companies output crude to Hawthorn Pipeline Buckeye Load Chicago IL Crude arrives Bakken, Operational Partners via pipeline, Canadian loaded on railcars to go to West, East and Gulf coasts; capacity undisclosed EnLink Load Frazeysburg OH 24,000, light Utica Operational Midstream oil condensate and various (Black Run grades of crude Rail Terminal) Enbridge Term Flanagan IL 140,000 Canadian If approved, as early as 1Q 2016 PBF Energy Ref Toledo OH Approx 70,000 Bakken, Study to build Canadian offloading facility at refinery under way; truck rack can take up to 16,000 bpd, can receive unit trains via third party Dakota Gold Load Stanley ND 70,000 Bakken Construction to Transfer, start by late Plaza 2014, high-speed Terminal rail loading available by 2H 2015 Phillips 66 Load Palermo, ND Initial Bakken, 4Q 2015; direct Partners Mountrail capacity Canadian access to 76-mile and County 100,000, can Sagagawea Paradigm double in size Pipeline and rail Energy to 200,000 access to the Partners LLC East and West coasts Energy Load Patoka IL N/A, but will U.S. Inland Planning loading Transfer handle unit facility to Partners trains enable crude delivery to East Coast refineries Enbridge Term Cushing OK 120,000 Primarily Under Energy Canadian consideration; Partners gauging shipper interest; if enough commitments secured, startup in late 2016 Joliet Bulk Term Joliet IL 85,000; will Canadian Will receive Barge & Rail supply Exxon crude via rail LLC; to be Mobil's 238,600 from Kinder acquired by bpd Joliet Morgan and Exxon Arc Logistics refinery subsidiary Partners LP Imperial Oil Ltd and joint-venture GE Electric 210,000 bpd rail Company loading facility in Edmonton, division GE Alberta; Energy commissioning Financial began for Joliet Services in facility with mid-May 2015 first two unit trains in April and early May 2015; project includes startup of an affiliate's 4-mile, 20-inch pipeline connecting the Joliet offloading facility to another pipeline that feeds the refinery; terminal equipped with heat and steam capability to increase unloading times ROCKIES Company Name Type City State Capacity (bpd) Crude Status Plains All Load Carr, Tampa CO 15,000 at Carr, Niobrara Both operational; American 35,000 at Carr to expand Tampa; both to by 1H 2015 expand to 68,000 (ships to CA, LA) Musket Corp Load Windsor CO Initially Niobrara Operational 16,000 expandable to more than 30,000 Powder River Load Douglas WY 20,000; Bakken, Operational Basin expandable to Niobrara, Industrial 60,000 Canadian Complex LLC, 50/50 joint venture of Crestwood Midstream Partners and Enersco Midstream LLC, subsidiary of Twin Eagle Resource Management Eighty-Eight Load Guernsey WY 80,000 Bakken, Operational Oil LLC; Niobrara, operated by Canadian, Strobel Big Horn Starostka Basin, Transfer Wyoming Cogent Energy Load Casper WY 80,000 Niobrara, Operational; will Solutions LLC Canadian, take excess crude and Granite western from Spectra Peak Bakken Energy Partners' Development 280,000 bpd LLC Canada-to-Wyoming Express Pipeline in Casper, where it connects to Spectra's 164,000 bpd Wyoming-to Illinois Platte Pipeline Savage Load Price, Salt UT 9,000 at each Uinta Basin Operational Services Lake City terminal United Energy Load 7 sites in More than Bakken, Operational Trading ND, CA, CO, 68,000 Niobrara, WY, TX Eagle Ford, Permian Pronghorn, Load Douglas WY 70,000 Niobrara Operational Genesis Energy Price River Load Wellington UT 15,000, Uinta Operational Terminal; expandable to Global One 40,000, and Transport/Wat shipped first co; Sunoco unit train in Logistics in February 2014 May 2014 bought a 55 percent interest Meritage Load Wright WY 70,000; to Niobrara Operational; Midstream/Arc expand to loaded first h Coal (Black 120,000 70,000-barrel Thunder unit train in Terminal) June 2014; expansion slated for 2015 Atlas Oil Co Load Evans CO 5,000 minimum Niobrara Operational; can expand to unit-train capability as production ramps up ARB Midstream Load Weld County CO 79,000; initial Niobrara Manifest 1Q 2015, LLC near Evans truck unloading unit train 35,000 operations in late 3Q 2015 Swan Ranch Load Cheyenne WY 70,000; Niobrara Operational Cheyenne Rail initially one Hub, Cogent unit train Energy every four to Solutions and five days Granite Peak Development Eighty-Eight Load Fort WY 80,000 Niobrara Operational Oil Laramie Sources: Company filings, presentations and announcements; North Dakota Pipeline Authority (Reporting by Kristen Hays in Houston; Editing by Terry Wade and Jim Marshall)