FACTBOX-Major oil storage owners at Cushing, Oklahoma

Mon Feb 28, 2011 7:42pm GMT
 

 NEW YORK, Feb 28 (Reuters) - Kinder Morgan (KMP.N: Quote) and new
partners Mercuria Energy and Deeprock Energy Resources plan to
build 750,000 barrels of crude storage capacity at Cushing,
Oklahoma this year.
 Kinder Morgan Energy Partners announced on Monday it was
buying a 50 percent stake in 1 million barrels of storage at
Cushing with Mercuria and Deepwrock, with the new 750,000
barrels of capacity due online by the third quarter of 2011.
[ID:nN28249823]
 The flood of new Canadian crude flowing into the Midwest
and the limited capacity to move that oil to other key refining
areas such as the Gulf Coast has prompted a rash of plans to
expand storage capacity at the key hub, which is the delivery
point for the New York Mercantile Exchange's futures contract.
 The growing rush of crude to Cushing has sent U.S. oil
futures to a record discount over $16 a barrel to Brent futures
this month. The U.S. Energy Information Administration in
December estimated Cushing capacity at 55 million barrels.
 Companies with tank facilities at Cushing have been able to
turn big profits in recent years by storing crude and
committing it for sale later, taking advantage of the contango,
when crude for near term delivery sells at a discount to crude
for later delivery.
 The following tables list new plans to build shell storage
capacity at Cushing, and existing capacity. Actual usable
storage capacity is estimated to be approximately 80 percent of
shell capacity due to operational and safety constraints:
                     PLANNED ADDITIONS TO CUSHING CAPACITY
                           (In millions of barrels)
                        ADDITIONAL
OPERATOR                    CAPACITY             COMPLETION
Magellan                      4.25                Late 2011
Plains All American           3.8                 End 2011
Kinder Morgan                 0.75                Q3 2011
                     EXISTING CUSHING OIL STORAGE CAPACITY
                           (In millions of barrels)
                         CAPACITY              CAPACITY
                         JULY 2010             NOV 2009
Enbridge                      14.8                  14.9 
Plains LP*                    14.2                  10.8 
Magellan**                     7.8                   7.8 
Blueknight/Vitol               6.7                   6.7 
SemGroup                       4.2                   4.1 
Enterprise                     3.1                   3.1 
ConocoPhillips                 0.8                   0.8 
Sunoco Logistics Partners      0.3                   0.3 
TOTAL:                    51.9 mln bls          48.5 mln bls
 * End-2010 capacity
 ** Former BP assets.
 Sources: Company filings and presentations, industry
sources at Cushing and elsewhere.
  (Reporting by Janet McGurty, Robert Campbell and Joshua
Schneyer;editing by Sofina Mirza-Reid)


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