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Intercontinental Exchange, Inc. (NYSE: ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, and Magellan Midstream Partners, L.P. (NYSE: MMP) announced the addition of dock capacity auctions for ICE Permian WTI crude oil futures contracts (HOU) at Magellan’s terminals in Galena Park and Seabrook.
This new monthly auction process will allow customers who purchase an ICE Permian WTI crude futures contract, deliverable at Magellan’s East Houston terminal (MEH), the optionality to load that product directly onto a vessel at Galena Park and Seabrookdock facilities.
Magellan plans to auction dock capacity rights to the Seabrook and Galena Park terminals through ICE’s WebICE platform. The initial auction is scheduled to be held on September 10, 2019 for physical delivery in November. Capacity offered will be adequate to fill Panamax and Aframax size vessels, with Suezmax size vessels being added in the future.
“This is an important step in the development of the Permian WTI futures contract,” said Jeff Barbuto, Global Head of Oil Business Development at ICE. “Allowing customers to acquire Magellan terminal (MEH)-quality WTI via the ICE Permian WTI crude contract, access storage through the storage futures contract, and now access dock space through this new auction, should offer significant efficiencies to our customers. We look forward to expanding this program over time.”
“We believe this new program will offer our customers the ability to seamlessly enhance their crude oil export capabilities at Houston area facilities, now including Galena Park and Seabrook,” said Robb Barnes, Magellan’s Senior Vice President of Commercial Crude Oil. “Participants in the ICE program will continue to benefit from the high-quality crude oil at Magellan’s facilities and access to a diverse group of refiners, and storage and export facilities through the Magellan network at a competitive rate.”
ICE is home to the world’s global crude and refined oil markets. Around half of the world’s oil futures are traded on ICE’s markets, including futures and options on the global benchmark ICE Brent crude, the U.S. benchmark West Texas Intermediate (WTI) crude, the Middle Eastern and Asian benchmark ICE Platts Dubai crude oil, Gasoil, Heating Oil and RBOB Gasoline, as well as hundreds of additional grades and oil products.
