Phillips 66, Genesis Energy set sights on crude-by-rail facilities

Phillips 66 last week announced plans to build a crude oil rail offloading facility at its Bayway Refinery in Linden, N.J.

To be operational by mid-2014, the facility is designed to handle an average of one unit train per day delivering about 75,000 barrels of crude. The facility will be located in the Conrail Shared Assets Area, which is accessed by both CSX Transportation and Norfolk Southern Railway.

Phillips 66 also plans to build a crude oil rail offloading facility at its refinery in Ferndale, Wash. To be operational by late 2014, the facility is designed to handle to 30,000 barrels per day.

"A key ongoing strategy for Phillips 66 is to increase supplies of cost-advantaged North American crude oil to our U.S. refineries," said company spokesman Rich Johnson in an email.

Meanwhile, Genesis Energy L.P. last week announced its Pronghorn rail facility near Douglas, Wyo., will begin handling crude oil shipments in December.

To be jointly served by BNSF Railway Co. and Union Pacific Railroad, the facility will handle crude produced in the Powder River Basin/Niobrara Shale.