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.
Tim Taylor, executive vice president, commercial, marketing, transportation & business development of Phillips 66, said: “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 and Global, the crude oil will be transported on CP’s rail network from the Bakken directly to Global’s terminal in Albany, New York.
