Trafigura AG Signs Pipeline Agreement with ETP
Agreement underscores Trafigura AG’s pivotal role in bringing Eagle Ford product to market
7 November 2013 - Trafigura AG, a leader in international commodities trading and logistics today announced it has signed a pipeline agreement with Energy Transfer Partners (NYSE: ETP) for crude oil and condensate transportation capacity. The 82-mile pipeline system from McMullen County to Corpus Christi will include the conversion of existing Energy Transfer natural gas pipelines to liquids service and have the capacity to transport approximately 100,000 barrels of crude oil and condensate per day. The South Texas pipeline system is expected to be operational in the next nine to 12 months.
"This pipeline combined with our deep-water terminal enables Trafigura to offer a complete solution to producers who seek to take Eagle Ford to the broader market," said Jeff Kopp, Trafigura's Director of Oil for North America. "This is another example of how we are continuing to expand our investment in Corpus Christi to provide producers with the maximum amount of flexibility," added Kopp.
"Combining Energy Transfer's pipeline assets with Trafigura's facilities in Corpus Christi is an extremely efficient solution for Eagle Ford shale producers," said Lee Hanse, Executive Vice President of Business Development for Energy Transfer Partners. "The repurposing of the existing natural gas pipeline also makes this a very timely solution for the growing supplies of crude oil and condensate in the area. Building upon over USD2 billion of infrastructure that we have already constructed to benefit Eagle Ford shale producers, we are continuing to advance additional gathering opportunities with producers to tie volume into this system, further enhancing logistics in the field."
To complement the existing multi-modal transportation system capabilities of its Corpus Christi terminal, Trafigura is building a second deep-water dock with an overall length of 850 feet and a 45 foot draft which will also be capable of loading an Aframax vessel. This second dock when combined with existing facilities, would allow Trafigura to berth three medium range tankers and two inland barges at the same time. Moreover, the new deep-water dock will result in increased capacity for the terminal and hence higher commercial activity for the Port of Corpus Christi. Construction on the new dock is currently underway and is expected to be completed by the first quarter of 2014.
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About Trafigura AG
Trafigura AG is a wholly owned subsidiary of Trafigura Beheer BV ("Trafigura"). Trafigura is one of the world's leading international commodity traders, specializing in the oil, minerals and metals markets, with 81 offices in 56 countries in six continents. Trafigura's primary trading businesses are the supply and transport of crude oil, petroleum products, renewable energies, coal, refined metals, ferrous and non-ferrous ores and concentrates. It is the world's second largest privately owned non-ferrous and oil trading company. Founded in 1993, the company is owned by its founding shareholders and senior management. It has achieved substantial growth in recent years, growing turnover from USD18 billion in 2004 to USD120.42 billion in 2012.
For more information visit www.trafigura.com