Magellan, Enterprise Expand Midland WTI Terminal Transfers Arrangement

Magellan and Enterprise are expanding this arrangement to now include Midland WTI futures customers who take delivery via ICE’s EFP or ADP mechanisms at one terminal and desire to transfer the barrels to the other terminal.

Hart Energy Staff
Magellan, Enterprise Expand Midland WTI Terminal Transfers Arrangement

“Expanding the free pump-over to include EFP and ADPs provides customers added flexibility to optimize their use of capital while still realizing the savings on the transfer costs they would otherwise incur,” said Jeff Barbuto, global head of oil markets at ICE. Sign in downtown Midland, Texas, displaying oil rigs. (Source: SG Arts / Shutterstock.com)

Magellan Midstream Partners LP and Enterprise Products Partners recently reached an agreement with the Intercontinental Exchange Inc. (ICE) to expand their terminal transfer arrangement in the Permian Basin.

The “no-charge” arrangement between the Magellan East Houston (MEH) and the Enterprise Crude Houston (ECHO) terminals to transfer crude oil delivered through the Midland WTI AGC futures contract (HOU) was recently expanded to include deliveries conducted via ICE’s Exchange for Physical (EFP) and Alternative Delivery Procedure (ADP) mechanisms.

“Expanding the free pump-over to include EFP and ADPs provides customers added flexibility to optimize their use of capital while still realizing the savings on the transfer costs they would otherwise incur,” Jeff Barbuto, global head of oil markets at ICE, commented in a joint release on June 1.

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