FACTBOX-Major oil storage owners at Cushing, Oklahoma
NEW YORK, Feb 28 (Reuters) - Kinder Morgan (KMP.N) 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)
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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