SemFuel is a North American commercial supplier and wholesale distributor of refined petroleum products. The company’s network predominately serves the Gulf Coast, Mid-Continent and Northern Mid-West regions of the United States. SemFuel’s contracted and owned storage capacity allows greater flexibility in PADD II* and PADD III* petroleum product markets.
With main offices in Denver, Houston and Green Bay, SemFuel is a full-service supplier for many refiners and industry partners. The company provides customers a clear market view, varied pricing options and numerous supply alternatives. SemFuel’s supply and distribution efforts fill both spot sales and contract volumes. In addition, SemFuel sells refined products on a truckload basis through various rack facilities on third-party pipeline systems. As a result, SemFuel markets and supplies refined petroleum products to a wide range of customers, including jobbers, wholesalers, utilities, railroads and cogeneration plants.
SemFuel’s arbitrage strategies include, but are not limited to, backwardation/contango markets, as well as location, time, grade and volumetric transactions. These transactions take place within major product pipelines and are hedged with either physical offsets or NYMEX hedges.
SemFuel’s Assets and Services
- Primarily stores, transports and markets gasoline, diesel, jet fuel and specialty products from the U.S. PADD III region to PADD II in order to support operational or seasonal changes in demand.
- Capitalizes on opportunities in the U.S. distribution system by utilizing strategically placed inventory, historical pipeline shipping volumes, proprietary terminals and storage facilities, and third-party terminals and storage facilities.
- Maintains significant shipper status on several key U.S. pipelines including: Magellan, including Mountain and South system, Colonial, Explorer, NuStar, Seaway (ConocoPhillips), TEPPCO, Badger, Wolverine, Buckeye and Westshore.
- Owns ten strategically located storage tanks of refined product storage that provide access to Magellan Pipeline, Explorer Pipeline and NuStar Energy Pipeline.
- Operates a terminal in North Houston, Texas, that offers a convenient source for gasoline, diesel and ethanol in southeast Texas.
- Owns and operates three terminals: Bettendorf, Iowa, with access to Magellan and Westshore Pipeline and dock access to Mississippi River; Green Bay, Wisconsin, with access to Westshore Pipeline and marine access by Great Lakes; Roger City, Michigan, with access to Lake Huron. Product lines include unleaded, diesel and ethanol products.
- Has delivery capacity at 67 rack locations in 15 states with average rack volume of 45,000 barrels per day.
*PADD stands for the Petroleum Administration of Defense District. PADD II includes states northward from Oklahoma to the Canadian border and spreads to the eastern boundaries of Ohio, Kentucky and Tennessee. PADD III includes Texas, Louisiana, Mississippi, Alabama and Arkansas.