Plains Cushing Terminal to Become Delivery Point for the Benchmark WTI Crude Oil Futures Contract
October 18, 2021 at 04:16 pm
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Plains All American announced that CME Group will add Plains' Cushing Terminal as a delivery point to the NYMEX WTI Crude Oil Futures contract, offering market participants an additional outlet to utilize the delivery mechanism of the world's most liquid crude oil futures benchmark. The change will take effect November 8th, 2021 for the February 2022 contract month, pending regulatory review. Plains made its initial investment at Cushing, Oklahoma in the early 1990s and is one of the largest operators at the Cushing hub.
Cushing, Oklahoma is one of the leading crude oil market hubs in North America, and Plains appreciates CME's recognition of Plains as one of the key liquidity points at the Cushing hub. Plains' Cushing Terminal profile: 27.2 million barrels of storage capacity; 23 pipeline connections (11 inbound and 12 outbound); 15 third-party terminal connections; and approximately 4.0 million barrels per day of average daily volume.
Plains GP Holdings, L.P. is a limited partnership. The Company owns and operates critical midstream infrastructure systems that connect various producing regions to key demand centers and export terminals. The Company operates through two segments: Crude Oil and Natural Gas Liquids (NGL). The Crude Oil segment operations generally consist of gathering and transporting crude oil using pipelines, gathering systems, trucks and at times on barges or railcars, in addition to providing terminalling, storage and other related services utilizing its integrated assets across the United States and Canada. The NGL segment operations involve natural gas processing and NGL fractionation, storage, transportation and terminalling. The NGL segment is engaged in providing gathering, fractionation, storage, and/or terminalling services to third-party customers for a fee, extracting NGL mix from the gas stream processed at its Empress straddle plant facility as well as acquiring NGL mix.