California's first crude-by-rail project is set to receive approval this month, which could help to reopen the shuttered Bakersfield refinery.
Bakersfield was closed in 2012 following its increasing reliance on expensive imports and the fact that there was no significant rail service in the area, subsequently making the plant unprofitable.
The facility at independent refiner Alon USA Energy Inc’s plant is situated in Kern County, which produces 65% of California’s oil.
The new rail project would allow the plant to increase crude offloading capacity to 140,000 barrels per day, a huge increase on its current 13,000 barrels per day. It would also open up access to cheaper inland U.S. and Canadian crudes.