Intercontinental Exchange, Magellan Midstream launch auction for short-term crude storage capacity at Magellan East Houston Terminal

Intercontinental Exchange (ICE) and Magellan Midstream Partners, L.P. (MMP) announced Wednesday the launch of a new auction for a portion of multi-month Permian WTI storage capacity at the Magellan East Houston Terminal.

“At a time when North America is producing and exporting record amounts of crude oil, this opportunity brings together the trading technology and risk management capabilities of ICE’s auction model and futures markets with Magellan’s extensive oil storage and transportation operations in the Gulf region,” Jeff Barbuto, global head of oil sales at ICE, said. “This is a solid first step towards developing new contracts in the U.S. Gulf Coast region through our alliance with Magellan.”

A total of 1.5 million barrels of Permian WTI storage at the Magellan East Houston Terminal was recently leased on the ICE trading platform with an average of 400,000 barrels leased per month.

The East Houston crude oil terminal, which is owned and operated by MMP has 8 million barrels of active capacity and the ability to further expand storage.

The auctions will be hosted on the ICE trading platform.

“We believe this initial storage auction on the ICE trading platform will lead the way for many more successful auctions and other creative options at our East Houston crude oil hub in the future,” Robb Barnes, senior vice president of commercial crude oil at MMP, said. “We are excited about the efficiencies and flexible options this new service brings to our Gulf Coast customers.”