Our Marketing & Logistics segment, operated by our subsidiary, MLTM, L.P., provides marketing services for NGLs, natural gas, condensate, crude oil and related liquid products, primarily in the mid-continent, Gulf Coast, and Southeastern United States. These operations include the purchase and sale of both equity and third-party liquid hydrocarbons. MLTM transports these products via truck, pipeline, railcar, barges and ships from wellheads, treating facilities, refineries, natural gas processing facilities and storage facilities to fractionation, refining, chemical, blending facilities and storage facilities.
Our NGLs Trading & Risk Management commercial group is responsible for the supply and disposition of purity NGLs products to and from end users in large bulk quantities. We largely focus on the three major U.S. trading hubs at Conway, Mont Belvieu, and Hattiesburg while providing central pricing, optimization, and hedging services for Midcoast.
We also provide marketing services for natural gas (“Residue”), primarily in Texas, Oklahoma, and Louisiana. These operations include the purchase and sale of natural gas associated with supply and disposition of Midcoast’s production from its gathering and processing facilities located in East Texas, North Texas, and the Anadarko Basin.
The Y-Grade & NGLs Marketing group provides flow assurance for Midcoast owned NGLs as well as third party NGLs. We do this by securing downstream capacity on a variety of NGLs takeaway pipelines and fractionation facilities. We also coordinate the aggregate takeaway of NGLs and fractionation capacity requirements for our production along with providing optimization services for our physical product. Other services include providing takeaway of third-party volumes by pipeline or truck.
Our Condensate & Crude Marketing team is responsible for marketing Midcoast produced field and plant condensate in the East Texas, North Texas, and the Anadarko Basin. Condensate from these areas are trucked out of field compressor station tanks or gas plants. We also purchase third-party condensate, unrelated to Midcoast, and crude oil.
Our Refinery Services is based on serving the needs of various refinery customers through supply and disposition of NGLs, olefins and off-spec material to and from refineries, pet-chems and gasoline blenders via truck, rail and pipeline. It entails both selling to and buying from these customers. Butane blending comprises the major portion of this segment.
In general, our Wholesale Propane Marketing segment serves a wide variety of retail and wholesale customers through propane purchases and sales. It involves shipping product to customers via truck, rail and pipelines. Significant terminal assets are employed to implement the services provided using our Petal facility and its strategic location to optimize logistics and create a competitive advantage for Midcoast into expanded downstream southeast propane markets.
We created our Naphtha Marketing segment as a standalone business that leads us into the Refined Products sector. It centers around our storage position on the Houston Ship Channel with access to domestic and international export markets. We blend, purchase and sell a variety of products such as naphtha, natural gasoline, gasoline blendstocks and blending components, with access by truck and vessel.
This function manages the receipts and deliveries of Midcoast’s commercial products such as NGLs, Natural Gas, Condensate and Crude Oil amongst other petroleum products. It is the nucleus function of all marketing activity and marketing strategies. Our rail fleet consists of 144 rail cars and we deploy an average of 90 trucks per day. Product movements are monitored through completion with regular communications with customers, plants, commercial/ marketing staff, and dispatchers. This function is critical for flow assurance of Natural Gas and NGLs production from our gas gathering and processing facilities as well as the execution and disposition of products.