U.S. light oil exports double in May, mostly to Europe

* U.S. condensate exports rise to about 120,000 bpd

* Bulk of U.S. oil heads to Europe

By Catherine Ngai and Florence Tan

NEW YORK, June 29 (Reuters) - U.S. exports of ultra-light

crude, also known as condensate, have doubled since the start of

the year, with most shipments headed to Europe, according to

traders familiar with the deals and data from an energy

consultant.

The United States exported between 120,000 and 140,000

barrels per day (bpd) of condensate last month, according to

traders and ClipperData, which tracks ships and terminal

loadings, up from about 60,000 bpd at the start of the year.

The condensate is lightly processed through stabilizers due

to rules banning crude exports in the United States, now the

world's third-largest oil producer.

The rise comes as more companies look to take advantage of

the ability to ship the oil overseas, including to places like

the Netherlands, France, South Korea and Brazil.

"One of the main surprises is that the majority of the

exports have been to Europe rather than anywhere else, when we

thought the concentration would be to Asian markets," said Abudi

Zein, chief operating officer at ClipperData, adding this was

probably to do with the size of the cargoes and freight costs.

Traders have also said that the oil's quality deterred some

Asian refiners.

Enterprise Products Partners led the pack with 1.8

million barrels of exports per month, or 60,000 bpd. It sold a

year's supply to Mitsubishi Corp and Vitol

at the start of this year.

BHP Billiton (NYSE: BBL - news) has been selling a 700,000-barrel

cargo every month, though has delayed a plan to double exports

to two cargoes a month due to production issues, traders said.

BP started exports in February and also shipped out a

cargo in April, said a trader who tracks the movement of U.S.

condensate. It had another cargo due to load at the end of June

which will head to Europe.

BHP and BP did not respond to requests for comment.

Meanwhile, in the first condensate shipment to Latin

America, some 636,000 barrels reached Petrobras' San Sebastiao

dock in May, according to data from ClipperData and trading

sources.

The oil exported by Enterprise, BHP and BP is of a heavier

grade with API gravity at 52-54 degrees, which goes to Europe,

traders said. API gravity is an indicator of the crude's density

and hence its quality.

Asian refiners prefer lighter grades of API with a gravity

of 61 degrees containing more petrochemical feedstock.

This grade is exported by Royal Dutch Shell (Xetra: R6C1.DE - news) , Plains

All American LP and Trafigura.

Company Monthly export programs

('000 bbls)

BHP 700

Enterprise 1800

Plains All American 300

Shell (LSE: RDSB.L - news) 300-500

BP* 300-500

*exports one cargo every alternate month

Source: Trade

(Editing by Ed Davies)