Mercuria Seeks Oil Tanks, Coal Mines in US Drive
NEW YORK, Reuters (March 1) - Swiss-based global energy trader Mercuria is expanding its Cushing oil storage footprint and may buy shuttered U.S. refiners or coal mines as it deepens its expansion into U.S. markets, a top executive said.
Mercuria, which has already doubled its U.S. staff in the past two years, last week opened a new office in Houston, where former Merrill Lynch trader Jeremy Taylor will lead a team of 20 people into the U.S. power, gas and coal markets, Marco Dunand, Mercuria Energy Trading's CEO, told Reuters.
That team will likely grow to 30 over time as the company that veteran oil traders Dunand and partner Daniel Jaeggi helped found six years ago seeks to leverage its European and Asian success to crack the vast U.S. market, which remains attractive in spite increased regulatory scrutiny.
"Our perspective is to better understand the market. What we can bring is essentially an extension of what we have elsewhere in the world," Dunand said in an interview.
"Over time we may look into acquiring principally coal assets, and it could be that we get involved in some of the gas," he added. "The power assets would probably be a bit more complicated to buy and not on our priority list."
Mercuria, which traded 58 million tonnes or nearly 1.2 million barrels per day (bpd) of crude oil last year, has rapidly expanded from its precursor as a Polish-founded firm trading mainly Russian pipeline crude into the fifth-biggest independent trader in the world with a diversified portfolio of upstream operations, infrastructure and trading desks.
"We've been bringing a fair amount of crude into the US, this helps us further supply to inland customers, helps us to provide liquidity to some of the customers," said Dunand. "We have some storage in Cushing that helps us to understand the benchmark."
Mercuria holds holds short- and mid-term leases on 1.7 million barrels of storage at the Cushing, Oklahoma, oil storage hub, and has a long-term lease on 1 million barrels of storage tanks now under construction at the strategic hub, where NYMEX crude oil futures contracts are settled.
The new tanks include the use of a small truck rack.
The firm is also looking to expand elsewhere at a time when the market's contango structure makes it profitable to store oil, and many traders anticipate increased U.S. import/export activity as refiners shut down in the face of flat domestic demand and more cost-competitive plants abroad.
"Refinery closures may create opportunities for storage and we are looking at a couple of possibilities to acquire storage," Dunand said. He said they were not looking at Valero's Delaware City plant, for which a group including successful refinery investor Tom O'Malley is in talks.
With existing offices in Chicago and Connecticut, a subsidiary in California and a team in Canada, Mercuria now has a staff of 51 in the United States. It has also invested some $200 million in upstream assets.
Mercuria is among a number of overseas traders including Vitol and Russia's Gazprom that are expanding their U.S. operations, attracted by the liquidity in over-the-counter and cash markets and untroubled by the risk of tighter regulation and limited position size in futures markets.
"The discussion that we hear about the change in regulations is more based on leverage plays, and this is not our main focus," Dunand said. "We feel quite comfortable that this will not affect our business. We manage our business within the bands that might come into play."
- Compelling results for blockchain oil-trade test ING, Société Générale, and Mercuria22.02.2017
- TRANSGLOBE ENERGY CORPORATION announces execution of prepayment agreement and marketing contract10.02.2017
- Pin Oak Holdings announces it has closed on a $100 million equity investment led by Dauphine Midstream and Mercuria Energy05.12.2016
- Mercuria Exports U.S. Energy to New Markets26.09.2016
- Mercuria Energy Trading SA successfully closed a USD 2.2 Billion Multi-Currency Revolving Credit Facility10.06.2016
- Mercuria to provide direct and sponsored access liquidity to Nasdaq Commodities European Power and Gas Markets11.05.2016
- Mercuria Energy Acquires Rocky Mountain Crude Business Unit from Enterprise Crude Oil LLC17.02.2016
- Mercuria welcomes Strategic Investment by ChemChina18.01.2016
- Minerva Bunkers starts physical supply operations offshore West Africa07.01.2016
- Mercuria Announces Strategic Investment from China Materials Storage and Transportation Development (CMSTD) to Expand Henry Bath Warehousing Business05.01.2016
- Mercuria Signs Asia USD 1.1 billion Revolving Credit Facilities 19.11.2015
- Mercuria Energy Group Ltd Announces Exclusive Agreement with Forte Oil Plc09.10.2015
- Mercuria Energy Closes Multicurrency Revolving Credit Facilities at USD 2.5 Billion22.06.2015
- Mercuria trades the first lots of German base load on CME Europe18.06.2015
- CITI fails in China metals claim against MERCURIA22.05.2015
- Mercuria Announces Expansion to Minerva Maritime Fuel Business12.03.2015
- Mercuria Hires More Than 40 Marine Fuel Specialists from OW Bunker15.12.2014
- Mercuria Signs Asia $1.0 Billion USD Revolving Credit Facilities18.11.2014
- Mercuria Closes Acquisition of J.P. Morgan Chase Physical Commodities Business03.10.2014
- Mercuria Announces U.K. Financial Conduct Authority Authorization22.09.2014
- Mercuria forms partnership with Pemex08.08.2014
- MERCURIA ENERGY TRADING SA successfully renewed and increased a USD 2.65 BILLION Multi-Currency Revolving Credit Facility26.06.2014
- Mercuria Announces Acquisition of J.P. Morgan Physical Commodities Business19.03.2014
- Mercuria Signs its Asian USD 1.0 Billion Revolving Credit Facilities28.11.2013
- Mercuria CFO's interview with EuroTreasurer - "We Have Seen a Flight to Quality"29.10.2013
- Mercuria CFO im FINANCE MAGAZINE - Interview09.10.2013
- Mercuria Invests $50m in Amromco Energy24.09.2013
- Mercuria successfully raises USD 1,800,000,000 Revolving Credit Facility02.07.2013
- Success of the Second FT Global Commodities Summit29.04.2013
- Mercuria Interview with Le Temps27.04.2013
- Mercuria Participates in a Pioneer CDM Project in West Africa26.03.2013
- Mercuria Partners with KW Express to Construct Crude by Rail Project in Houston22.02.2013
- FT Global Commodities Summit 201320.11.2012
- Announcement of New Senior Executive01.11.2012
- Mercuria Announces a New USD 700,000,000 Uncommitted Secured Borrowing Base Financing30.10.2012
- Mercuria Advances Asian Hard Commodities Strategy18.10.2012
- Mercuria and Sinopec Kantos Establish a New International Partnership in Liquid Bulk Storage15.10.2012
- Mercuria Strengthens its Growing Presence in China 18.07.2012
- Mercuria Grows its Global Metals Trading Business17.07.2012
- Mercuria Energy Successfully Raises USD 1,700,000,000 and EUR 145,000,00001.06.2012
- Mercuria Advances into Global Metals Markets03.05.2012
- Certified Emission Reductions: Mercuria Participated in Record Transaction19.04.2012
- Mercuria sponsors the first Financial Times Global Commodities Summit15.03.2012
- Mercuria interview with Reuters01.02.2012
- Mercuria Sponsors the First Financial Times Global Commodities Summit16.01.2012
- Mercuria Energy Group Ltd Signs a USD 755 Million Syndicated Revolving Credit Facility in Asia07.12.2011
- Mercuria US Coal Financing and Investment06.10.2011
- Formation of a Joint Venture by Mercuria and Datang24.08.2011
- Mercuria Energy Group, Anchor Investor in IFC's Now Active Carbon Credit Fund03.06.2011
- Mercuria to Participate in IFC's Carbon Credit Fund02.02.2011
- Mercuria Signs a USD 500 Million Syndicated Revolving Credit Facility in Asia15.12.2010
- Mercuria Energy Group Acquires Strategic Coal Concession in Indonesia16.11.2010
- Mercuria Energy Group Makes Strategic Carbon Business Acquisition03.11.2010
- Mercuria Enters Into a Strategic Coal Marketing Alliance with Optimum Coal of South Africa03.11.2010
- Strong Demand Leads Mercuria Energy Trading to Increase its New Revolving Credit Facility to USD 1,250,000,00014.06.2010
- Mercuria's Dutch Affiliate Laid The Foundation Stone For Vesta Biofuels Amsterdam05.03.2010
- Mercuria Seeks Oil Tanks, Coal Mines in US Drive03.03.2010
- ECT Arbitration Mercuria Energy Group LTD V. The Republic of Poland: The Arbitral Tribunal Confirms That It Has Jurisdiction26.01.2010