💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Andeavor undeterred by Washington state panel's rail-terminal snub

Published 12/05/2017, 07:40 PM
© Reuters. Andeavor undeterred by Washington state panel's rail-terminal snub
SHEL
-

By Erwin Seba

HOUSTON (Reuters) - Independent U.S. refiner Andeavor said on Tuesday it will not abandon a push to build a Pacific Coast rail-to-marine terminal despite a Washington state panel's recommendation against the project.

The Washington Energy Facility Site Evaluation Council last week voted unanimously to recommend against building the $210 million project, citing the likelihood of increased accidents and deaths from greater train traffic. Its vote is advisory and the recommendation will be sent within weeks to Governor Jay Inslee, who will make the final decision.

Andeavor and partner Savage Cos five years ago had proposed a rail-to-marine terminal that would transfer 11 million barrels of oil a month from trains to tankers at the Port of Vancouver, Washington.

Brendan Smith, a spokesman for Andeavor, formerly Tesoro, said on Tuesday the San Antonio-based company was not giving up on the project.

"The value of the Vancouver Energy project continues to exist, and our intention at this time is to move forward in the process and await Governor Inslee's decision," he said.

Inslee, a Democrat, has 60 days from receiving the council's formal recommendation to accept or reject it. The council is expected to send the formal recommendation to the governor by the end of the month.

"The governor definitely appreciates the work the council has done but he has expressed no opinion about the project," said Inslee spokeswoman Tara Lee.

Andeavor and Savage Cos, a Utah-based transportation logistics firm, began the project when West Coast refiners including Royal Dutch Shell (LON:RDSa) Plc were looking to open rail terminals to bring cheaper oil from the U.S. midcontinent to plants along the Pacific Coast.

But fierce opposition to shipping crude by rail arose, especially after a 2013 oil-train disaster in Quebec, and the economic incentive declined as fuel demand on along the West Coast leveled off, leading all but Andeavor to cancel their plans.

Locally, resistance to the Vancouver terminal also has been strong, fueled by environmentalists and others opposed to moving so much crude on a rail line that runs along the Columbia River.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.