Independent refiner HollyFrontier Corp plans to build a rail facility at its New Mexico refining system in collaboration with logistics partnership Holly Energy Partners to enable access to various cheap inland U.S. crude oils, the companies said.

The project, expected to be finished by early 2014, will connect to Holly Energy's crude oil pipeline system in southeastern New Mexico. It will have an initial capacity of up to 70,000 barrels per day.

The project will enable HollyFrontier to tap different crude oil types including West Texas Intermediate, West Texas Sour and heavy Canadian crude. Its Artesia, New Mexico, refinery has a capacity of 105,000 bpd.

The companies also said the project will give producers in the region more takeaway options as output grows. (Reuters)