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Re: Penny Roger$ post# 528

Monday, 12/02/2013 1:56:29 AM

Monday, December 02, 2013 1:56:29 AM

Post# of 552
TSO is considering a new 63kb/d crude pipeline in Alaska to help feed ANS to its 72kb/d refinery in Kenai. Currently this refinery receives its crude by tanker and barge.

TSO is partnering with Cook Inlet Energy on the project. The pipeline would cost US$50m to build and come into service in mid to late 2014.

Assuming a 50% EBITDA margin, the pipeline tariff would likely be in the US$0.50-0.60/bbl range.

This pipeline would likely reduce transportation costs for the refinery while freeing up Jones Act shipping capacity at the same time.

In addition, TSO could drop the pipeline into its midstream MLP, Tesoro Logistics.

Purely my own opinion. Do your Due Diligence.
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