The Louisiana Offshore Oil Port has quietly allocated one of its eight underground crude oil storage caverns to West Texas Intermediate, a reflection of the Texas grade’s continued ascent as the US’ flagship oil. In documents published to its website, LOOP established this month a “Midland WTI cavern” into which the grade may be delivered. LOOP defines Midland WTI as maximum 44 API, maximum 0.45% sulfur, maximum 10 psi RVP, maximum 11 psi TVP and maximum 1% sediment and water. The cavern is known as Segregation 21. It replaces Segregation 20, which allowed for deliveries of maximum 46.5 API Eagle Ford, Bakken and Midland WTI. That took effect in October 2017. The cavern has historically been used for light grades. Before October 2017, LOOP in the past also allowed for the Nigerian grades Bonny Light (34.4 API, 0.20%S), Forcados (30.3 API, 0.18%) and Qua Iboe (36.3 API, 0.12%) to be delivered. The best option for delivering WTI into LOOP would be via Shell’s 375,000 b/d Zydeco pipeline (formerly known as Ho-Ho), which extends from Houston to the Louisiana terminal. Another option would be by barge or tanker from Corpus Christi or the Houston area delivering into LOOP’s offshore platform. A… continue reading
Continue reading Midland WTI gets its own cavern at LOOP crude terminal. This article appeared first on CTRM Center.
Source: CTRM Center