Enterprise Products Partners to Hold Crude Oil for Export Auction

Chicago-based trading firm CME Group will conduct the online auction on behalf of Enterprise.

OILMONSTER.COM- Houston pipeline operator Enterprise Products Partners will hold an electronic auction in April for domestically produced crude oil to be exported from its Houston Ship Channel terminal.

In a Wednesday morning statement, Enterprise announced the auction of West Texas Intermediate crude oil would take place on April 4.01:12

Chicago-based trading firm CME Group will conduct the online auction on behalf of Enterprise.

'With the recent success of the first ever electronic auction of U.S. crude oil for export, the market has demonstrated its demand for transparency, efficiency, accurate physical pricing and access to reliable supplies of crude oil with consistent quality standards,' Enterprise Senior Vice President Brent Secrest said in a statement.

The auction will be the second to take place since the launch of a physically delivered NYMEX WTI Houston Crude Oil futures contract in November 2018.

Using Enterprise's distribution network, the Houston futures contract has access to more than 4 million barrels per day of crude oil, 45 million barrels of crude oil storage and 18 deepwater docks.

Less than four years after the federal government lifted a ban on exporting crude oil, Enterprise has become the largest exporter of crude oil in the United States — accounting for nearly 40 percent of crude oil shipments abroad.

Founded in 1968 and headquartered in Houston, Enterprise Products Partners reported making $4.2 billion profit on $36.5 billion of revenue in 2018.

The company is trade on the New York Stock Exchange under the ticker symbol EPD.

Courtesy: www.chron.com