Platts to include Wink-to-Webster and Midland-to-ECHO 3 to pipeline provenance in global WTI assessments

S&P Global Platts will amend its pipeline provenance standard for WTI Midland crude cargoes and all related assessments to additionally allow for crude supplied from the Wink-to-Webster and/or the Midland-to-ECHO 3 pipelines, effective Jan. 3, 2022.

Currently, Platts WTI Midland assessments reflect oil loading from one or a combination of the following crude pipelines: BridgeTex, Longhorn, Midland-to-Echo I/II, EPIC, Gray Oak, Cactus I/II and Permian Express.

Additionally, all WTI Midland cargo assessments also reflect crude that meets Platts WTI Midland quality specifications, available here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/080620-platts-implements-comprehensive-platts-wti-midland-specifications

Effective Jan. 3, 2022, Platts WTI Midland cargo assessments will reflect WTI Midland loading from one or more of the designated pipelines, including Wink-to-Webster and Midland-to-ECHO 3, from the same terminal, provided it continues to meet Platts WTI Midland quality specifications.

The Wink-to-Webster pipeline, with a nameplate capacity of up to 1.5 million b/d, first began initial flows in October 2020 on the Midland-to-Webster portion, with full operations of the line expected in the fourth quarter of 2021.

The pipeline has origin points in Wink and Midland, Texas, and delivers to ECHO, Webster Terminal, Baytown, with connectivity to Texas City and Beaumont.

The pipeline is owned by Wink to Webster Pipeline LLC, a joint-venture between affiliates of ExxonMobil, Plains All American, Lotus Midstream, Delek US, MPLX LP and Rattler Midstream LP, and an affiliate of Enterprise Product Partners L.P.

The Midland-to-ECHO 3 pipeline is the latest addition to Enterprise Product Partners Midland-to-ECHO System with a nameplate capacity of 450,000 b/d.

The line began operations in October 2020 transporting crude from Midland, Texas to the ECHO terminal in Harris county, 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 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 will 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.

Please send all questions and comments to americas_crude@spglobal.com and pricegroup@spglobal.com.

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