Magellan and Enterprise Agree to Waive
Related Pump Over Fee Between Terminals
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global
provider of data, technology, and market infrastructure, Magellan
Midstream Partners, L.P. (NYSE: MMP), and Enterprise Products
Partners L.P. (NYSE: EPD) today announced that the ICE Midland WTI
American Gulf Coast (Midland WTI AGC) futures contract is expected
to be live for trading beginning January 24.
The contract (ICE: HOU) will be deliverable at both the Magellan
East Houston (MEH) terminal and Enterprise Crude Houston (ECHO)
terminal, which are collectively supplied by over four million
barrels per day of Midland-quality WTI crude pipeline capacity. The
first contract month to deliver to both the MEH and ECHO terminals
will be the March 2022 contract.
“This contract has been developed by working with industry
participants every step of the way and marks an important milestone
in the development of the U.S. Gulf Coast as the benchmark location
for pricing U.S. crude,” said Jeff Barbuto, Global Head of Oil
Markets at ICE.
The futures contract terms state that the seller has the option
to deliver to either the MEH or ECHO terminal, and buyers have the
ability to indicate their terminal of preference in which to take
delivery. In order to further facilitate trading between the
terminals to create one large liquidity pool, during the first year
Magellan and Enterprise have agreed to transfer Midland WTI barrels
between the terminals for no charge if the barrels are not
delivered to the buyer’s preferred terminal, and at 10 cents per
barrel for all other WTI transfers meeting HOU quality
specifications.
“Based on market feedback received during the development of the
contract rules and specifications, it became clear that a solution
was needed to help ensure buyers were able to receive crude oil at
the terminal of their choosing,” said Brent Secrest, Executive Vice
President and Chief Commercial Officer for the General Partner of
Enterprise Products Partners. “We are pleased to work with Magellan
to provide this flexibility at no cost for Midland WTI AGC barrels,
and to go one step further in standardizing general transfers of
WTI meeting the HOU quality specifications in support of this
contract.”
“Customer feedback has been supportive of this new futures
contract, and we are excited to work with ICE and Enterprise to
make what we believe will be a more efficient contract available in
the Houston Gulf Coast region,” said Aaron Milford, Magellan’s
Chief Operating Officer.
The Midland WTI AGC futures contract is expected to have export
access to over 14 ship docks in the Houston area. Together Magellan
and Enterprise’s Houston distribution systems offer 60 million
barrels of combined crude storage capacity. These distribution
systems connect to a further 90 million barrels of storage
capacity, bringing the total to around 150 million barrels of total
crude storage capacity in the Houston area, as well as offering
additional direct access to water for exports and floating
storage.
###
Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly
traded partnership that primarily transports, stores and
distributes refined petroleum products and crude oil. Magellan owns
the longest refined petroleum products pipeline system in the
country, with access to nearly 50% of the nation’s refining
capacity, and can store more than 100 million barrels of petroleum
products such as gasoline, diesel fuel and crude oil. More
information is available at www.magellanlp.com.
Enterprise Products Partners L.P. is one of the largest publicly
traded partnerships and a leading North American provider of
midstream energy services to producers and consumers of natural
gas, NGLs, crude oil, refined products and petrochemicals. Services
include: natural gas gathering, treating, processing,
transportation and storage; NGL transportation, fractionation,
storage and marine terminals; crude oil gathering, transportation,
storage and marine terminals; petrochemical and refined products
production, transportation, storage, and marine terminals and
related services; and a marine transportation business that
operates on key U.S. inland and intracoastal waterway systems. The
partnership's assets include approximately 50,000 miles of
pipelines; 260 million barrels of storage capacity for NGLs, crude
oil, refined products and petrochemicals; and 14 billion cubic feet
of natural gas storage capacity. Please visit
www.enterpriseproducts.com for more information.
About Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune
500 company that designs, builds and operates digital networks to
connect people to opportunity. We provide financial technology and
data services across major asset classes that offer our customers
access to mission-critical workflow tools that increase
transparency and operational efficiencies. We operate
exchanges, including the New York Stock Exchange, and
clearing houses that help people invest, raise capital and
manage risk across multiple asset classes. Our comprehensive fixed
income data services and execution capabilities provide
information, analytics and platforms that help our customers
capitalize on opportunities and operate more efficiently. At ICE
Mortgage Technology, we are transforming and digitizing the
U.S. residential mortgage process, from consumer engagement through
loan registration. Together, we transform, streamline and automate
industries to connect our customers to opportunity.
Trademarks of ICE and/or its affiliates include Intercontinental
Exchange, ICE, ICE block design, NYSE and New York Stock Exchange.
Information regarding additional trademarks and intellectual
property rights of Intercontinental Exchange, Inc. and/or its
affiliates is located here. Key Information Documents for
certain products covered by the EU Packaged Retail and
Insurance-based Investment Products Regulation can be accessed on
the relevant exchange website under the heading “Key Information
Documents (KIDS).”
This press release includes “forward-looking statements” as
defined by the Securities and Exchange Commission. All statements,
other than statements of historical fact, included herein that
address activities, events, developments or transactions that
Enterprise and its general partner, as well as Magellan and ICE
expect, believe or anticipate will or may occur in the future are
forward-looking statements. These forward-looking statements are
subject to risks and uncertainties that may cause actual results to
differ materially from expectations, including required approvals
by regulatory agencies, the possibility that the anticipated
benefits from such activities, events, developments or transactions
cannot be fully realized, the possibility that costs or
difficulties related thereto will be greater than expected, the
impact of competition, and other risk factors included in
Enterprise’s, Magellan’s and ICE’s reports filed with the
Securities and Exchange Commission. Readers are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of their dates. Except as required by law,
Enterprise, Magellan and ICE do not intend to update or revise
their respective forward-looking statements, whether as a result of
new information, future events or otherwise.
ICE- CORP
Source: Intercontinental Exchange
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version on businesswire.com: https://www.businesswire.com/news/home/20220113005503/en/
ICE Media Contact: Rebecca Mitchell
Rebecca.Mitchell@ice.com +44 7951 057 351 ICE Investor
Contact: Mary Caroline O’Neal marycaroline.oneal@ice.com (770)
738-2151 Magellan Contacts Paula Farrell Investor Relations
(918) 574-7650 paula.farrell@magellanlp.com Bruce Heine Media
Relations (918) 574-7010 bruce.heine@magellanlp.com Enterprise
Contacts Randy Burkhalter Investor Relations (713) 381-6812 or
(866) 230-0745 rburkhalter@eprod.com Rick Rainey Media Relations
(713) 381-3635 rrainey@eprod.com
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