The futures contract (HOS) will expire into a Capacity Allocation Contract (CAC) for short-term storage of Permian WTI crude barrels at Magellan’s East Houston Terminal (MEH).
500,000 bbls of storage is segregated by Magellan for delivery for the first six months, 1MM bbls available thereafter. Long-term storage holders can deliver storage capacity into the futures contract.*
*Subject to the futures Contract and Magellan‘s terms and conditions
Held at 10:30am EST on the first Tuesday of each month Magellan makes a variable amount of storage available for bidding. The winning bids of the auction will result in a HOS futures position.
Ability for participants to place a bid that reflects their direct interest in the market. The auction provides transparent pricing, the opportunity to plan crude movements and more availability to hedge.
The auction is available via WebICE and will be held on the first Tuesday of every month. You need a futures account with limits for HOS in order to participate in the auction.
The storage futures market will be available on WebICE or any other approved ISV. The contract is designated as storage capacity in the form of a CAC, cleared on ICE Clear Europe with six months forward listed.