NEW YORK, Sept 16 (Reuters) - Plains All American's
crude oil pipelines linking the Permian shale basin to the
Corpus Christi export hub in Texas are facing quality issues
related to high mercaptans, or naturally-occurring sulfur
compounds, according to sources familiar with the matter and a
notice seen by Reuters.
Starting October 1, Plains will charge a half-dollar fee on
every barrel that fails to meet mercaptan specifications on some
of its pipelines in the Gulf Coast region, according to a notice
to shippers seen by Reuters and two of the sources.
The sources requested anonymity to discuss confidential
information. Plains did not immediately respond to a request for
comment.
The quality issues could force Gulf Coast refiners,
especially those in the Corpus Christi region in South Texas, to
seek alternatives for the Midland crude oil produced in the
Permian and delivered by the impacted Plains pipelines, one of
the sources said.
Plains is still trying to identify the cause of the
contamination, so it is too early to tell if the issues will
impact U.S. crude exports, one of the sources said. Over 2
million bpd of crude oil is exported from Corpus Christi,
according to the port's website.
Plains owns interests in a number of long-haul pipelines
that move about 2.1 million bpd of crude oil out of the Permian
Basin to Corpus Christi and to the Cushing, Oklahoma storage
hub, according to its public filings.