Platts adds EPIC, Gray Oak and Permian Express to pipeline provenance in global WTI assessments

S&P Global Platts has added the EPIC, Gray Oak and Permian Express crude pipelines to its list of pipelines reflected in Midland WTI cargo assessments globally, effective June 1, 2020.

The decision follows a May 14 proposal: www.spglobal.com/platts/en/our-methodology/subscriber-notes/051420-platts-proposes-to-include-epic-gray-oak-and-permian-express-pipeline-provenance-in-global-wti-assessments.

Platts assessments of WTI FOB USGC, WTI Midland DAP Rotterdam, WTI Midland DAP Augusta, WTI Midland DES Singapore and WTI Midland DES Yeosu now reflect crude supplied via the BridgeTex, Cactus I and II, Longhorn, Midland-to-ECHO I and II, Gray Oak, EPIC, and Permian Express pipelines, which flow directly from the Permian Basin to terminals on the US Gulf Coast. This group of pipelines provides a consistent framework for market-accepted sources of Midland-quality crude in the global market.

Platts' methodology for the delivered WTI Midland assessments in Europe and Asia reflect the terms and conditions laid out for the FOB Gulf Coast WTI Midland and Eagle Ford 45 assessments as published in Houston.

EPIC, with 600,000 b/d of initial capacity, began full service April 1, 2020, and moves Permian Basin crude from Orla, Wink and Crane, Texas, to Robstown, Midway and Corpus Christi, Texas. In Corpus Christi, the pipeline connects to the EPIC export dock and the MODA, Ingleside dock. The pipeline is owned by EPIC Midstream.

Gray Oak, with 900,000 b/d capacity, is owned by Phillips 66 Partners and began full service to Corpus Christi and Ingleside, Texas, in early April. The line transports crude from injection points in Conan, Orla, Wink and Crane, Texas, in the Permian Basin to market centers along the Texas Gulf Coast, including Taft, Ingleside and Corpus Christi. Once fully operational, Gray Oak will move barrels to other destinations including the Phillips 66 Sweeny Refinery and the South Texas Gateway Terminal, which is under construction in Ingleside. Permian Express consists of four segments: Permian Express 1, 2, 3 and 4, with a combined capacity of 640,000 b/d. Permian Express transports crude from the Permian Basin to Nederland, Texas.

The origin pipelines used as a basis for Platts Midland-quality WTI cargo assessments globally may be expanded or modified over time to reflect market-accepted sources of Midland-quality crude shipped directly from the Permian Basin as Texas' crude oil infrastructure evolves. Platts would publish offers for WTI Midland supplied via other pipelines in the Platts Market on Close assessment process, but such provenance would need to be explicitly stated. These may be normalized for assessment purposes to reflect standard quality supplied through one of the pipelines listed above. Platts would not publish bids that restrict supply to a specific terminal or pipeline, but will publish open origin bids in which buyers are willing to accept any material that meets their specification requirement.

Platts also stipulates that crude oil supplied for trades reported in the MOC process should not contain any previously cracked or refined material.

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