Trafigura AG signs South Texas pipeline agreement with ETP

Trafigura AG, a leader in international commodities trading and logistics has announced it has signed a pipeline agreement with Energy Transfer Partners for crude oil and condensate transportation capacity.

South Texas pipeline

The 82 mile pipeline system from McMullen Country to Corpus Christi will include the conversion of existing Energy Transfer natural gas pipelines to liquids service and has the capacity to transport approximately 100 000 bpd of crude oil and condensate. The South Texas pipeline system is expected to be operational in the next 9 - 12 months.

“This pipeline, combined with our deepwater terminal enables Trafigura to offer a complete solution to producers who seek to take Eagle Ford to the broader market,” said Jeff Kopp, Trafigura’s Director of Oil for North America. “This is another example of how we are continuing to expand out investment in Corpus Christi to provide producers with the maximum amount of flexibility,” added Kopp.

An efficient solution

“Combining Energy Transfer’s pipeline assets with Trafigura’s facilities in Corpus Christi is an extremely efficient solution for Eagle Ford shale producers,” said Lee Hanse, Executive Vice President of Business Development for Energy Transfer Partners. “The re-purposing of the existing natural gas pipeline also makes this a very timely solution for the growing supplies of crude oil and condensate in the area. Building upon over US$ 2 billion of infrastructure that we have already constructed to benefit Eagle Ford shale producers, we are continuing to advance additional gathering opportunities with producers to tie volume into this system, further enhancing logistics in the field.”

Increasing capacity

To complement the existing multi-modal transportation system capabilities of its Coorpus Christ terminal, Trafigura is building a second deepwater dock with an overall length of 850 ft an a 45 ft draft which will also be capable of loading an Aframax vessel. This second dock, when combined with existing facilities, would allow Trafigura to berth three medium range tankers and two inland barges at the same time. Moreover, the new deepwater dock will result in increased capacity for the terminal and hence higher commercial activity for the Port of Corpus Christi. Construction of the new dock is currently underway and is expected to be completed by the first quarter of 2014.

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/08112013/trafigura_ag_signs_south_texas_pipeline_agreement_with_etp/