BP Midstream Partners LP (BPMP.N) 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.
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