November 3, 2011 / 2:49 PM / 9 years ago

UPDATE 1-Tesoro says Washington refinery will cut use of ANS

* Rail shipping project expected to finished by end-2012

* Project to bring 30,000 bpd in Bakken crude to refinery

HOUSTON, Nov 3 (Reuters) - Tesoro Corp Chief Executive Greg Goff said on Thursday the company’s 120,000 barrel per day (bpd) Anacortes, Washington, refinery would cut the use of Alaska North Slope crude oil as it boosts shipments of Bakken crude by rail.

“ANS is a relatively small part of our crude oil supply on the West Coast and I think one of the ways that we intend to lessen the amount of ANS we run is the project to move Bakken crude to Anacortes,” Goff said during a conference call with Wall Street analysts.

Tesoro has a railroad loading system under construction that will boost its shipments of Bakken crude from North Dakota to the Anacortes refinery by the end of 2012.

The $50 million Bakken rail shipment project, announced in July, will eventually bring 30,000 bpd in the cheaper crude oil to the Anacortes, up from the current 1,000 to 2,000 bpd.

Rangeland Energy will operate the loading facility in North Dakota and Tesoro will operate the unloading facility in Washington. The company is seeking permits for the unloading facility.

The loading facility is expected to be completed early next year while the unloading facility is expected online by the end of 2012.

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