Commodities trading house Trafigura signed a long-term agreement with Plains All American Pipeline LP (NYSE: PAA) to transport a total of 300,000 barrels per day (bbl/d) of oil from the Permian Basin to the port of Corpus Christi, Texas, it said Jan. 23, in a move aimed at boosting exports.
Trafigura will transport the oil via the Cactus II Pipeline, which is scheduled to go into service in third-quarter 2019.
RELATED: Plains To Proceed With Construction Of Cactus II Pipeline In Permian Basin
The deal includes an agreement signed in July for Trafigura to receive up to 100,000 bbl/d of crude oil and condensate at Corpus Christi. It allows Trafigura to transport crude oil from producers in the Permian Basin, the largest oil field in the United States, and deliver it to U.S. and international refining customers, the company said.
"This is one of the largest commitments of its kind to be signed in the U.S. and solidifies Trafigura’s position as a leading U.S. exporter of crude oil and refined products," said Corey Prologo, head of oil trading and director of Trafigura North America.
U.S. crude exports have surged since a decades-old ban was lifted in late 2015, with shipments hitting a record 2 million bbl/d recently.
Trafigura said the deal with Plains will also allow it to ship crude oil to its condensate splitters and export terminal in Corpus Christi, which it co-owns with Buckeye Partners LP (NYSE: BPL).
Vitol, the world's largest oil trader, and Harvest Pipeline Co. entered into an agreement last month to develop a crude terminal in the Port of Corpus Christi in Texas.
The project will provide a "new waterborne outlet for the growing number of Permian barrels that are seeking access to international markets," the companies said.
Recommended Reading
Diamondback Energy Closes $4.1B Double Eagle IV Acquisition
2025-04-02 - Diamondback Energy Inc. closed on its approximately $4.1 billion deal to buy EnCap Investments’ Double Eagle IV, adding approximately 40,000 net acres in the Midland Basin to its portfolio.
Sources: Citadel Buys Haynesville E&P Paloma Natural Gas for $1.2B
2025-03-13 - Hedge fund giant Citadel’s acquisition includes approximately 60 undeveloped Haynesville locations, sources told Hart Energy.
GeoPark Ends Plans to Purchase Repsol’s Colombian Assets
2025-01-15 - Repsol’s partners exercised their rights to acquire Repsol Colombia O&G Ltd., which included interest in CPO-9 Block and SierraCol Energy Arauca LLC, after the purchase was announced.
Glenfarne Deal Makes Company Lead Developer of Alaska LNG Project
2025-03-28 - Glenfarne Group LLC is taking over as the lead developer of the Alaska LNG project with the acquisition of a majority interest in the project from Alaska Gasline Development Corp.
M&A Target Double Eagle Ups Midland Oil Output 114% YOY
2025-01-27 - Double Eagle IV ramped up oil and gas production to more than 120,000 boe/d in November 2024, Texas data shows. The E&P is one of the most attractive private equity-backed M&A targets left in the Permian Basin.