US-based Buckeye Partners has formed a joint venture with Phillips 66 Partners and Andeavor to develop a new deep-water, open access marine terminal in Ingleside, Texas.
The South Texas Gateway Terminal, which will be constructed on a 212-acre waterfront site at the mouth of Corpus Christi Bay, is positioned to serve as the primary outlet for crude oil and condensate delivered through the planned Gray Oak pipeline from the Permian Basin.
Buckeye will construct and operate the terminal, which will offer storage capacity of 3.4 million barrels of crude oil, connectivity to the Gray Oak pipeline and two deep-water vessel docks capable of berthing Very Large Crude Carrier (VLCC) petroleum tankers.
The facility can be expanded to include more than 10 million barrels of storage capacity, as well as multiple additional docks and inbound pipeline connections.
The initial construction is supported by long-term minimum volume throughput commitments from customers, including Phillips 66 and Andeavor.
It is scheduled to commence initial operations by the end of 2019.
Buckeye will have a 50% interest in the formed joint venture and Phillips 66 Partners and Andeavor will each own a 25% interest.
Buckeye executive vice president and Buckeye’s global marine terminals business unit president Khalid Muslih said: “The South Texas Gateway Terminal will serve as a premier open-access deep-water marine terminal in the Port of Corpus Christi.
“The terminal will provide customers with logistics solutions that connect the region’s rapidly growing crude oil production with advantaged access to global markets.
“Buckeye is extremely pleased to be partnering with two other leading integrated energy firms in Phillips 66 Partners and Andeavor and believes this partnership offers tremendous opportunity for future development and growth of the South Texas Gateway Terminal.”
Muslih said that the recently announced improvements to the flagship Buckeye Texas Partners terminal in the Port of Corpus Christi have expanded its marine terminalling capabilities and the combined marine terminal presence in Corpus Christi will provide customers with advantaged last mile solutions, including connectivity to two recently announced Permian Basin pipeline expansions.