Tesoro Corp. plans to ship 30,000 barrels of crude oil per day from western North Dakota to a Washington refinery by the end of next year.
Sen. John Hoeven's office said in a news release on Thursday that the senator met with Tesoro CEO Greg Goff to discuss the company's expansion plans in North Dakota, including a $35 million, 10,000 barrel-per-day expansion of the Mandan refinery and the rail project, which Tesoro announced in July.
According to a July release from Tesoro, the rail project will expand the amount of North Dakota crude oil going to its Anacortes, Wash., facility from 1,000 to 2,000 barrels of oil per day currently to 30,000 barrels per day.
Tesoro plans to build an unloading facility to accommodate a unit train at the Anacortes refinery. Construction of the facility is expected to take nine to 12 months to complete after permits are in place and will cost approximately $50 million, the Tesoro release said.
Crude oil will be loaded at a facility owned by Rangeland Oil, LLC., in Williams County to be shipped to the Anacortes refinery. Tesoro has a long-term agreement with Rangeland for use of the facility, which is connected to Tesoro's High Plains Pipeline System.
The expansion of the Mandan refinery will push the facility's capacity to 68,000 barrels-a-day. Oil will be transported by the company's High Plains Pipeline system from the state's oil fields. Construction is expected to be completed in the second quarter of 2012. Refinery spokesperson David Schollars said the expansion will feature up to 20 new jobs in Mandan.