VANCOUVER, Wash. (AP) — Tesoro Corp. and Savage Cos. said Monday they formed a joint venture to build a port facility at the Port of Vancouver, Wash., to help move crude oil to West Coast refineries.
The companies said the facility will cost between $75 million and $100 million. It will be able to handle up to 120,000 barrels of oil per day and could be expanded to 280,000 barrels per day, they said.
The deal needs the approval of regulators and the port commission.
The companies said that access to rail and other marine facilities makes the Port of Vancouver a good hub for distributing North American crude oil to refineries.
Tesoro, based in San Antonio, Texas, is an independent refining company with seven refineries in the western U.S. with daily capacity of about 675,000 barrels. Savage, based in Salt Lake City, will handle the design, construction and operation of the facility, which the companies expect to begin operating next year.
Shares of Tesoro rose 88 cents to close at $51.55.