Port of Corpus Christi, Carlyle Group to construct oil export terminal on Harbor Island

WCN Editorial Team 30 Oct 2018 NORTH AMERICA ENERGY & UTILITIES

The Port of Corpus Christi Authority has signed an agreement with The Carlyle Group to develop a crude oil export terminal on Harbor Island, connecting crude oil production in the US with global markets.

Upon completion, the terminal would become the first onshore location in the country capable of providing export service to fully-laden Very Large Crude Carriers (VLCCs) and

“VLCC access at the Port of Corpus Christi will open the global markets for US oil producers, pipelines, their supply chains and customers. The result could produce up to a $50bn annual reduction to the national trade deficit,” the Port of Corpus Christi said in a statement.

Under the terms of the agreement, Carlyle will lead the terminal’s construction and ongoing operations on an exclusive basis.

Additionally, Carlyle would provide a private funding solution for a dredging project to bring fully-laden VLCCs to Harbor Island (at least a 75ft main channel depth).

Expected to be operational in late 2020, the terminal would include the development of at least two loading docks on Harbor Island as well as crude oil tank storage inland across Redfish Bay on land secured by Carlyle.

The development of the terminal is subject to agreement on definitive documentation between the parties, satisfactory completion of due diligence and final approval from Carlyle’s investment committee.

Port of Corpus Christi chief executive officer Sean Strawbridge said: “A project of this magnitude further underscores the vital role the Port of Corpus Christi plays in the global energy markets and as an important economic generator for the great state of Texas.

“In partnering with such an experienced and well-capitalized firm as The Carlyle Group, the market should take notice and have a high degree of confidence of this project’s success.”

Carlyle’s Global Infrastructure team managing director Ferris Hussein said: “Carlyle appreciates the steadfast, prescient leadership provided by the Port of Corpus Christi Authority in advancing this project. Providing VLCC access at the Port is of critical importance to the United States, and we will collaborate with all stakeholders to ensure such service is provided.”

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Image: Port of Corpus Christi, Carlyle Group to construct oil export terminal on Harbor Island. Photo: Courtesy of Carlo San/Freeimages.com.

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