BP Exported Super-Light Crude From Texas
HOUSTON, Feb 23 (Reuters) – BP Plc exported almost 670,000 barrels of minimally processed super-light crude oil from the Houston Ship Channel greater than per week in the past, in keeping with ClipperData, an trade agency that tracks crude actions.
The 667,638-barrel cargo left Enterprise Products Partners’ ship channel docks – a part of the corporate’s current $4.41 billion acquisition of Oiltanking Partners LP – on Feb. 15 certain for Rotterdam in The Netherlands, ClipperData accomplice Abudi Zein mentioned in an interview.
The cargo’s documentation mentioned the cargo was processed condensate – a super-light type of crude – from the Eagle Ford shale in South Texas, he mentioned.
BP declined touch upon the cargo or whether or not the corporate is amongst a number of firms that obtained U.S. authorities approval to export condensate that has undergone sufficient processing to qualify as a refined product.
The loosening of the decades-old crude export ban opens export avenues for producers as home refiners and petrochemical firms have restricted demand for such mild oil.
BP has a 10-year contract with Kinder Morgan Inc to purchase all output from two 50,000 barrels per day (bpd) condensate splitters on the Houston Ship Channel. The first is slated to start out up subsequent month, adopted by the second this summer season.
A splitter “splits” condensate into naphtha, a constructing block for gasoline, and distillates reminiscent of diesel and jet gas.
The firms sealed the splitter deal in 2012. More than a 12 months later the U.S. Department of Commerce issued the primary of a number of approvals permitting firms to export condensate with much less processing from a stabilizer, which removes pure fuel liquids and contaminants however doesn’t make motor fuels.
BP’s Feb. 15 cargo illustrates that the corporate can export stabilized condensate or extra processed splitter output as soon as Kinder’s splitter begins up.
The lightness of oil is essentially decided by its API gravity specification – a measure of how mild or heavy crude is in comparison with water – however the Commerce Department’s Bureau of Industry and Security has not outlined what the API gravity should be to establish crude as condensate. Typical West Texas Intermediate mild crude ranges from 37 to about 40, and firms say condensate ranges from 45 to 60 or greater.
BP’s documentation for the Feb. 15 cargo mentioned the cargo’s API gravity was 62.6, Zein mentioned.
(Reporting By Kristen Hays; Editing by Cynthia Osterman)
(c) 2015 Thomson Reuters, All Rights Reserved
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