Tesoro eyes logistics growth opportunities

Tesoro continues to hunt for logistics and marketing assets to expand its western US footprint but is finding more success growing its existing business.

The US independent refiner has worked to more tightly integrate its refineries with downstream logistics and marketing businesses, including an expansion of Tesoro's wholesale business.

Further growth would concentrate on logistics and marketing businesses between the west coast and the Mississippi river, chief executive Greg Goff said today in a third quarter earnings call.

"We will continue to just evaluate opportunities as they become available," Goff said. "But probably more importantly, we are seeing really good growth in our underlying business that is probably a little bit ahead of our expectations from what we thought we would be able to do last year."

The company continues to wait for state approval of its proposed 360,000 b/d joint venture railed-crude-to-marine transloading facility, Vancouver Energy, in Washington.

Last month, Vancouver Energy amended its application to say it is "willing to accept" a 180,000 b/d limit that would grow by 90,000 b/d for each year after opening that it did not suffer a "material public safety or environmental incident" either at the facility or in rail or marine transit to or from it.

The Washington Energy Facility Site Evaluation Council is reviewing the application before making a recommendation to the governor's office, which has the final say.