February 2020, Vol. 247, No. 2
Global News
Mercuria Plans to Compete for South Texas Oil-Trading Hub
Commodities trader Mercuria Energy Group expects to open a new U.S. Gulf Coast crude oil storage facility next year that could compete to become a trading hub for shale oil, the Swiss company’s investment chief said.
Pin Oak Terminals LLC, a joint venture owned by Mercuria and Dauphine Midstream LLC, is building 2 million barrels of crude storage outside of Corpus Christi, Texas, near where several pipelines connect and other firms have oil storage, said Brian Falik, Mercuria’s chief investment officer for the Americas.
The new Pin Oak hub, which is expected to open mid-2020, could potentially become the main location for crude price assessments for oil shipments through Corpus Christi, Falik said in a phone interview.
Almost 4.5 million barrels of storage capacity is now under construction outside Corpus Christi, said Andy Lipow, president of consultants Lipow Oil Associates, citing state filings and operators’ announcements.
Corpus Christi’s crude oil loadings have vaulted to more than 1 million bpd this year, briefly surpassing shipments from Houston, which is the most active U.S. Gulf Coast trading hub.
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