RPT-UPDATE 2-Trader Trafigura enters Eagle Ford storage play
(Fixes typo in final graph)
* Trafigura buys 600,000 barrels of Corpus oil storage
* Trafigura, ETP join forces for marine shipping
NEW YORK, Jan 12 (Reuters) - Trading house Trafigura AG [TRAFG.UL] said on Thursday it bought Texas Docks & Rail Inc terminal assets located in Corpus Christi, giving them a foothold in the lucrative market to store growing production of south Texas Eagle Ford Shale oil and move it out to refineries along the Gulf Coast and the East Coast. Trafigura has also formed a partnership with the Energy Transfer Partners (ETP.N) which gives Eagle Ford producers the ability to access one of the deepest private water docks in the region.
Energy Transfer owns and operates approximately 18,000 miles of natural gas and natural gas liquids pipelines in the United States, including an extensive network of pipelines and related services throughout the Eagle Ford shale region.
Swiss-based Trafigura is the world's third largest trader of crude oil, handling about 2.5 million barrels a day, and manages around $2 billion via its hedge fund Galena.
The Texas Dock & Rail terminal is an 85-acre industrial site in Corpus Christi, Texas consisting of approximately 600,000 barrels of storage for crude oil, fuel, and condensate. The terminal has a deepwater dock which is 1,200 feet long with 45 foot draft and extensive rail and truck access.
"We have truck, rail loading and unloading facilities, a dock capable of loading multiple barges simultaneously, and we have plenty of space to expand,” said Jeff Kopp, Trafigura's director of oil for North America.
“We’re coordinating with Energy Transfer Partners to provide pipeline solutions to bring Eagle Ford supplies to Corpus Christi where Trafigura will be instrumental in providing market outlets for these barrels.”
A spokeswoman for Trafigura said the financial terms of the deal were not being disclosed and said the deal had closed.
The Port of Corpus Christi has become the terminus of much of Eagle Ford shale oil. Crude oil and condensates moving out of Corpus Christi's port to other regions of the United States could reach about 80,000 barrels per day by 2015 as pipeline construction brings more crude into the region.
Some local refineries are already using the very light and sweet crude oil. Valero's Three Rivers refinery, located nearby the formation, has found it exceeding economical to run Eagle Ford. Valero also runs Eagle Ford at its Corpus Christi refinery as does privately-held Flint Hills, part of privately held Koch Industries.
Trafigura joins the ranks of other trading companies, including Vitol, who hold pipeline and terminal assets in key U.S. producing and refining areas through its BlueKnight Partners.
Another large, multi-national commodity trader, Mercuria has a physical stake in the Bakken play, another shale oil play located in North Dakota.
(Reporting By Janet McGurty; Editing by Alden Bentley and David Gregorio)
((janet.mcgurty@thomsonreuters.com)(+1 646 226 3027)(Reuters Messaging: janet.mcgurty.thomsonreuters.com@reuters.net)) Keywords: TRAFIGURA/EAGLEFORD
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