Trader Mercuria to compete for South Texas oil-trading hub -exec

Mercuria Holdings

18/12/2019 24:31

HOUSTON, Dec 17 (Reuters) - 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 on Tuesday. 
    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. 
    There is no Corpus Christi regional price now like the one
that has emerged for pricing West Texas Intermediate crude at
the Magellan East Houston terminal, although Argus Media has
considered developing such an assessment. 
    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 barrels per day (bpd) this year, briefly
surpassing shipments from Houston, which is the most active U.S.
Gulf Coast trading hub. 
    Phillips 66's  PSX.N  planned Red Oak pipeline is expected
to bring additional barrels to the Corpus Christi area from West
Texas, North Dakota, Colorado and Cushing, Oklahoma, beginning
in early 2021. 
    Mercuria will begin expanded exports of U.S. crude early
next year from the Pin Oak facilities, with a capacity of
320,000 bpd. It could double that in 2021, when the Red Oak oil
pipeline is expected to come into service.     

 (Reporting by Collin Eaton in Houston; Editing by Tom Hogue)
 ((Collin.Eaton@thomsonreuters.com; 713-210-8509))