Trafigura Set To Increase US Oil Exports
One of the world’s biggest commodity traders, Trafigura, has signed a long-term agreement to transport 300,000 bpd from the Permian Basin to the port of Corpus Christi in Texas, via a pipeline expected to be operational in Q3 2019.
Trafigura has signed the deal with Plains All American Pipeline, L.P. to deliver crude oil via the Cactus II Pipeline to U.S. and international refining customers, the company’s splitters and export terminal in Corpus Christi.
“This is one of the largest commitments of its kind to be signed in the US and solidifies Trafigura’s position as a leading US exporter of crude oil and refined products,” said Corey Prologo, Head of Oil Trading and Director for Trafigura North America.
While Trafigura is strengthening its U.S. position, Plains All American Pipeline saidearlier this week that it had received sufficient binding commitments to allow it to proceed with the construction of the new Cactus II Pipeline which includes a combination of existing pipelines and two new pipelines.
The new pipeline system, once in service, will add up to 585,000 bpd of Permian Basin pipeline takeaway capacity at a time in which Permian production is expected to continue to grow, leading analysts wondering whether there would be enough pipeline capacity to transport the increased oil production.
Another commodity trader, Vitol, signed last month an agreement with Harvest Pipeline Company—an affiliate of Hilcorp Energy Company—to explore joint development of a crude oil terminal in the Port of Corpus Christi, in response to increased demand for crude oil transportation from the Permian and Eagle Ford.
Midstream companies will continue to pour billions of dollars into takeaway capacity infrastructure in the Permian, with each project worth around US$1 billion, for a total of tens of billions of dollars, Aaron Blomquist, managing director, investment banking with Tudor, Pickering, Holt & Co., told Midland Reporter-Telegram in an interview last month.
Related News
Related News
- Kinder Morgan Proposes 290-Mile Gas Pipeline Expansion Spanning Three States
- Enbridge Plans 86-Mile Pipeline Expansion, Bringing 850 Workers to Northern B.C.
- Intensity, Rainbow Energy to Build 344-Mile Gas Pipeline Across North Dakota
- Tallgrass to Build New Permian-to-Rockies Pipeline, Targets 2028 Startup with 2.4 Bcf Capacity
- U.S. Moves to Block Enterprise Products’ Exports to China Over Security Risk
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- A Systematic Approach To Ensuring Pipeline Integrity
- 275-Mile Texas-to-Oklahoma Gas Pipeline Enters Open Season
- LNG Canada Start-Up Fails to Lift Gas Prices Amid Supply Glut
- TC Energy’s North Baja Pipeline Expansion Brings Mexico Closer to LNG Exports
Comments