Trafigura Begins Shipping Permian Crude via Plains' Cactus II

HOUSTON (P&GJ) — Trafigura Trading today said it has commenced shipments of crude oil from the Permian Basin to the Corpus Christi, Texas, via the Cactus II Pipeline, marking the first confirmed shipments on Plains All American's newly operational system.

A Suezmax tanker at Corpus Christi. (source: Trafigura)

Trafigura Trading, a subsidiary of SIngapore-based Trafigura Group, said the activity is underpinned by a significant long-term volume commitment executed by Trafigura in early 2018.

The 670,000-bpd Cactus II system includes a combination of existing pipelines and new pipeline construction projects originating in Wink, Texas and extending to the Gulf Coast for export to Europe and beyond. It also includes a new terminal south of Taft, Texas, with more than 1 million barrels of crude oil storage.

Trafigura said its strong presence in the United States, along with extensive investments in gathering and logistics infrastructure, global customer base and marketing skills, give it a "unique ability to place U.S. barrels with end customers around the world, from the Mediterranean to the Far East."

"WTI is fast becoming a global benchmark again, having shown its relevance to the physical markets," said Kevin Jebbitt, head of crude trading for Trafigura.  "Trafigura is at the forefront of connecting the American barrel to the global market."

This system is owned by joint venture Cactus II Pipeline LLC, and Plains will construct and operate the system on behalf of the joint venture partners. 

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