NEW YORK, May 6 (Reuters) - BP Midstream Partners LP
offshore pipeline volumes increased by 12% in the first
financial quarter, but onshore oil and refined products pipeline
demand lagged, company executives said on Thursday.
Overall, the amount of crude oil and refined products
shipped on BP Midstream pipelines was up 8% to 1.7 million
barrels per day in the three months ended March 31 compared with
the fourth quarter of 2020, Jack Collins, the company's chief
financial officer, said on a company earnings call.
Oil volumes on offshore pipelines - including on the 400,000
barrel-per-day Mars crude oil line off of Louisiana - grew in
the first quarter largely due to better weather than the
previous quarter, when multiple storms forced U.S. Gulf Coast
production to shut, Collins said.
Volumes fell on some on-land pipelines, including the River
Rouge refined products pipeline and the BP2 crude oil pipeline.
River Rouge ships out of BP's Whiting, Indiana refinery, while
BP2 supplies the plant.
River Rouge suffered from lower fuel demand caused by
COVID-19 pandemic transportation and business restrictions,
while BP2 was hampered by demand for the Enbridge Mainline
pipeline, Collins said.
The Diamondback pipeline, a transporter of diluent to
Canada, saw higher seasonal demand in the first quarter after
dipping the previous three months.
In the three months ending on June 30, BP Midstream expects
BP2 and River Rouge volumes to rise and Diamondback demand to
decrease, Collins said. Overall pipeline volumes are expected to
be flat, he said.
BP Midstream's quarterly revenue was $29.6 million, down
from $30.7 million in the fourth quarter of 2020.
(Reporting by Laila Kearney; Editing by Hugh Lawson)
BP (BP.)
