Global Leader in International Oil and Gas Industry News

posted in:

Global Partners and Phillips 66 sign long-term crude transportation and logistics contract

Wednesday, Jan 09, 2013

Global Partners LP (NYSE:GLP) today announced that it has signed a five-year contract with Phillips 66 (NYSE:PSX) under which Global will use its rail transloading, logistics and transportation system to deliver crude oil from the Bakken region of North Dakota to Phillips 66’s Bayway, NJ refinery. The terms of the contract include a take-or-pay commitment from Phillips 66 to receive approximately 91 million barrels of crude oil over the contract term, which equates to approximately 50,000 barrels per day.

“We are proud to partner with one of the world’s leading independent downstream energy companies”

“We are proud to partner with one of the world’s leading independent downstream energy companies,” said Eric Slifka, President and CEO of Global Partners. “Phillips 66 and its predecessor has been a long-standing strategic business partner with Global for more than 15 years in the refined products market. More recently, Phillips 66 has been an important customer for Global as we have expanded our crude supply and logistics services. Today’s announcement further enhances our position as a leader in transporting crude by rail from the mid-continent of the U.S. and Canada to the East Coast. This agreement grows our mix of stable fee-based contract income.”

“Global has established a ‘virtual pipeline’ for the reliable transportation of Bakken crude,” said Tim Taylor, Executive Vice President, Commercial, Marketing, Transportation & Business Development of Phillips 66. “Our five-year agreement with Global assures us long-term access to advantaged crude for our Bayway refinery through what we believe is a cost competitive origin-to-destination supply system to the East Coast.”

The Bakken crude oil is expected to be transloaded at Basin Transload LLC’s North Dakota rail facilities. Global has agreed to purchase a 60% interest in Basin Transload. This transaction is expected to close in the first quarter of 2013. As a continuation of the partnership between Canadian Pacific (TSX:CP) (NYSE:CP) and Global, the crude oil will be transported on CP’s rail network from the Bakken directly to Global’s terminal in Albany, NY.

“CP is extremely pleased to be working with Global in providing rail direct service from the North Dakota Bakken to the Northeast U.S., which demonstrates the advantages of CP’s strategic rail network and experience in moving energy products. CP is the only North American railroad to serve the Bakken Formation, the Alberta Industrial Heartland and other energy formations in the United States and Canada directly to the Northeast U.S.,” said Canadian Pacific Executive Vice President and Chief Marketing Officer, Jane O'Hagan.

Source: Business Wire

To access over 3,000 of the latest oil projects from across the world visit Projects OGP for free trial today

posted in:

Other Oil & Gas News

AVEVA provides Integrated Engineering & Design solutions to TOTAL E&P Nigeria Limited 18-04-2014
Oando Energy Resources increases deposit for acquisition of Nigerian Upstream Oil and Gas Business of ConocoPhillips 18-04-2014
Linde will be exclusive hydrogen supplier for the Shell Eco-marathon in Houston 18-04-2014
Technip wins Umbilical contract for Kaombo project in Angola 18-04-2014
Forest Oil announces first quarter 2014 earnings release date and teleconference 18-04-2014
Saipem announces awarded FPSO contracts in Angola worth more than $4 billion 18-04-2014
Endeavour announces settlement of SM Energy litigation 18-04-2014
Drilling and production update 18-04-2014
Shell announces Malaysia deep-water gas discovery 18-04-2014
Meeting between the Ukrainian Minister of Energy, Yuri Prodan, and Eni's CEO Paolo Scaroni 18-04-2014