Petroleum products company Global Partners has signed a five-year contract with Houston-based energy company Phillips 66, under which Global will use its rail transloading, logistics and transportation system to deliver crude oil from the Bakken region in North Dakota to the Phillips 66 Bayway refinery in New Jersey.
The terms of the contract include a take-or-pay commitment from Phillips 66 to receive about 91 million barrels of crude oil over the contract term, which is approximately 50,000 barrels per day.
The contract will employ Global’s network of loading facilities and offloading terminals, and the crude oil will be transported via Canadian Pacific Railway’s network from the Bakken region directly to Global’s terminal in Albany, N.Y., in a continuation of the partnership between Global and CP.
“CP is extremely pleased to be working with Global in providing rail direct service from the North Dakota Bakken to the Northeast U.S.,” said Canadian Pacific Executive Vice President and Chief Marketing Officer, Jane O’Hagan.
Global Partners President and CEO Eric Slifka noted that Global has the capacity to move approximately 160,000 barrels of product per day to the company’s Albany terminal, and this month it anticipates moving an average of 100,000 barrels per day through the facility.