Intercontinental Exchange and Magellan Midstream Partners have launched of an auction for a portion of multi-month Permian WTI storage capacity at the Magellan East Houston Terminal.
Recently, a total of 1.5 million barrels of Permian WTI storage at the Magellan East Houston Terminal was leased on the ICE trading platform, with an average of 400,000 barrels leased per month. The auctions are designed to help bring additional transparency and efficiencies to the storage and transportation of crude oil in the U.S. Gulf Coast.
The facility has eight million barrels of active capacity and the ability to further expand storage at the terminal. The auctions are being hosted on the ICE trading platform to automate the process and improve transparency and efficiencies.
Magellan’s Senior Vice President of Commercial Crude Oil, Robb Barnes said: “We believe this initial storage auction on the ICE trading platform will lead the way for many more successful auctions and other creative options at our East Houston crude oil hub in the future. We are excited about the efficiencies and flexible options this new service brings to our Gulf Coast customers.”
Global Head of Oil Sales at ICE, Jeff Barbuto said: “At a time when North America is producing and exporting record amounts of crude oil, this opportunity brings together the trading technology and risk management capabilities of ICE’s auction model and futures markets with Magellan’s extensive oil storage and transportation operations in the Gulf region. This is a solid first step towards developing new contracts in the U.S. Gulf Coast region through our alliance with Magellan.”
For more information visit www.magellanlp.com
23rd Feb 2018