Port of Vancouver Taps Into Bakken Crude

By Staff | September 06, 2013

The Port of Vancouver USA is looking inland for crude. The POV’s board of commissioners has unanimously approved a 10-year lease with a joint venture group formed between Tesoro Corp. and Savage Co. to construct a crude oil handling facility that will import Bakken crude. The crude will be shipped to the port via rail before transfer to marine vessels headed to refineries in California, Washington or Alaska.

In total, the port will dedicate 42 acres to the Tesoro Savage joint venture (TSJV) for a rail unloading facility, storage tanks and a vessel loading area. TSJV will invest roughly $100 million in the facility. Revenue generated over the lease period is expected to exceed $45 million for the port. The crude transloading facility will also create 120 permanent jobs and 250 temporary construction jobs.

The 120,000-barrel-per-day site is exciting for Tesoro, according to Greg Goff, president and CEO of Tesoro. The facility will be operational by 2014, and could be expanded to 280,000 barrels per day. “Building upon the recent success of the rail unloading facility at our Anacortes, Wash., refinery, where we have been delivering Mid-Continent crude via unit train,” Goff said, “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.”