Superior Execution

Superior Execution

Stockton Expansion Fuels Growth in the Central Valley

The recent Stockton Terminal expansion is an excellent example of a quick-payback targeted investment that has had an almost immediate positive impact on performance—while also yielding significant environmental benefits.

The project gained momentum in 2011 with the creation of Tesoro Logistics, LP (TLLP), a limited partnership focused on improving the profitability and utilization of Tesoro’s logistic assets.

Superior Execution image SRR“TLLP was better positioned than Tesoro Refining and Marketing Company to obtain a rapid payback from expansion of the terminal,” said John Walker, Manager, Terminals Northwest for TLLP. “Working as TLLP, we were able to make the business case and secure the necessary funding to proceed.”

The expansion work necessitated thousands of hours of onsite work by contractors, raising potential safety concerns. However, the team addressed these concerns effectively, guided by the strategic priority of superior execution. Tesoro’s established permitting process helped to reinforce a strong emphasis on safety, reinforced by daily tailgate safety meetings.

“If something is not right, anyone at the terminal has the authority to stop work until we can proceed safely,” John said. “We really do live Tesoro’s core values, and they include a strong commitment to safety and environmental stewardship.”

Begun in May 2012 and completed in June 2013, the multifaceted Stockton expansion project yielded many capacity and efficiency benefits:

  • Existing tank storage more than doubled.
  • Loading racks were converted from a bi-directional configuration to one-directional bays, which reduced average loading time and increased tank turnaround.
  • Upgraded product pumps provide more efficient truck and trailer loading.

Tesoro now runs almost all its Stockton-area throughput through Tesoro’s Stockton Terminal. October 2013 throughput was 24 million gallons, compared to 13 million gallons in October 2012. Meanwhile, the expansion also provided a number of environmental benefits:

  • The installation and certification of a new vapor recovery unit increased the amount of throughput allowed by the San Joaquin Air Pollution Control District from 450,000 gallons of gasoline a day to 771,100 gallons of gasoline a day, thus meeting customers’ requirements while reducing impact to the environment.
  • New biodiesel blending capability gives Tesoro the benefit of being the only supplier in the area. It also lowers the cost of compliance with federal and state environmental mandates by capturing valuable biofuel Renewable Identification Number (RIN) and Low Carbon Fuel Standard (LCFS) credits.
  • The majority of the loading rack piping at the terminal has been brought above ground, rendering the pipes more reliable, reducing the potential for leaks and making the identification of leaks much easier.
  • A new Continuous Emission Monitoring System (CEMS), which monitors all emissions coming out of the vapor recovery unit, helps to verify compliance.

“The expansion made sense from both a business perspective and an environmental perspective,” John said. “All these improvements should help to secure the future profitability and success of Tesoro and Tesoro Logistics, while affirming our good environmental citizenship.”

Find this story and learn more about Tesoro’s Guiding Principles in our 2013 Social Responsibility Report.