• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 4 hours Dutch Populists Shock the EU with Election Victory
  • 12 hours One Last Warning For The U.S. Shale Patch
  • 1 hour Venezuela Says Russian Troops Land to Service Military Equipment
  • 7 hours 3 Pipes: EPIC 900K, CACTUS II 670K, GREY OAKS 800K
  • 1 hour Read: OPEC THREATENED TO KILL US SHALE
  • 21 hours Climate change's fingerprints are on U.S. Midwest floods
  • 9 hours U.S.-China Trade War Poses Biggest Risk To Global Stability
  • 1 day Oil Slips Further From 2019 Highs On Trade Worries
  • 1 day Telsa Sales in Europe
  • 1 day The Political Debacle: Brexit delayed
  • 18 hours Modular Nuclear Reactors
  • 9 hours European Parliament demands Nord-Stream-ii pipeline to be Stopped
  • 2 days Poll: Will Renewables Save the World?
Flurry Of Bearish News Sends Oil Lower

Flurry Of Bearish News Sends Oil Lower

Renewed demand concerns are spooking…

Can Summer Save LNG Demand?

Can Summer Save LNG Demand?

With Asian LNG spot prices…

Trafigura Set To Increase US Oil Exports

Oil tanker

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 said earlier 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.

Related: OPEC Drives Oil Prices Back Up

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.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News