US energy asset owner Magellan Midstream Partners has bought Cushing, Oklahoma, US, storage space from BP, the third largest holder at the hub.
UK oil major BP sold its oil tanks as part of a wider $339 million (266.4 million) transaction, but will lease back the 7.8 million barrels of tank storage space at Cushing for several years from Magellan Midstream Partners.
The 57 tanks BP sold have a shell capacity of 7.8 million barrels but operational constraints currently restrict usable capacity to 5.5 million barrels.
Once BP's lease on the storage space expires, Magellan will be free to rent tanks to other parties.
Magellan is eyeing opportunities from rising Canadian oil production and expects to eventually play a role in supplying Houston-area refineries with Canadian crude. It also plans to build another 2 million barrels of storage at Cushing by 2011.
Companies with access to the tank facilities at Cushing have profited by storing crude and committing it for sale later.
The Cushing tank farm held 35.8 million barrels of crude in the week through 2 July, according to data from the U.S. Energy Information Administration.