ICE and Magellan Midstream Partners are working together to bring additional transparency to the storage and transportation of crude oil in the U.S. Gulf Coast.
The auctions for short term crude oil storage at the Magellan East Houston (MEH) facility, which were previously conducted by email, will now be held on the ICE trading platform, bringing greater efficiencies for customers.
On the last week of every month auction details will be announced to registered participants via email and through ICE Instant Message. Auctions will take place on the first Tuesday of every month.
In order to participate in the crude oil storage auction, each participant must have a Participant Agreement in place with ICE Futures U.S. as well as trading access to the Magellan storage capacity market type.
If you required access to the ICE trading platform or have any questions contact firstname.lastname@example.org.
In addition to your existing agreements with Magellan Midstream Partners, you must also request auctions access from Magellan Crude Oil Pipeline Company via the Credit Management Tool.
If you have any questions regarding the Magellan agreement or limits, please contact email@example.com
MEH Permian WTI Crude Oil Storage
|Description||A bilateral transaction for Permian WTI crude oil tank storage in the Magellan East Houston terminal system. This is for the legal right to use designated MEH storage capacity (as defined in the Magellan Midstream Partners, L.P terms and conditions, hereafter “Terms and Conditions”) for a specified calendar month.|
|Unit of Trading||Any multiple of 50,000 barrels (50 lots)|
|Currency||US Dollars and cents|
|Trading Price Quotation||One cent ($0.01) per barrel|
|Delivery||At the conclusion of the auction, all winning bids will be notified on the ICE trading platform with a confirmation ticket. The contact details of the buyer and seller will be provided within the confirmation and scheduling. Delivery will be communicated directly between the counterparties.|
|Current Storage Capacity||9MM+ bbls of active capacity|
|Connectivity Inbound||Longhorn, Bridgetex and HoustonLink Pipelines, with Truck offloading|
|Connectivity Outbound||Shell HoHo (Zydeco) pipeline, Houston distribution system, and Magellan Galena Park|
Further information on the Magellan East Houston Terminal is available at www.magellanlp.com.