Friday, June 08, 2012

Phillips 66 acquiring 2,000 tank cars

Written by  Luther S. Miller, Senior Consulting Editor

The Phillips 66 Co. is reported to be acquiring 2,000 new tank cars to move oil from North Dakota to Phillips 66 refineries on the Atlantic and Pacific coasts.

The supplier was not specified in a Financial Times report.

The cars are valued at a reported $200 million and will have the capacity to move 120,000 barrels of oil a day.

In a Reuters interview last month, Phillips 66 CEO Greg Garland said the refining company seeks to process more shale oil "everywhere we can get it," adding, "We want to increase our exposure in both the West Coast and East Coast for some of those advantages barrels."

The company is actively pursuing rail delivery and storage to handle crude oil products until such time as pipeline alternatives are available.