Buckeye-Led JV to Build VLCC-Capable Terminal at Corpus Christi
Houston-based pipeline and terminal operator Buckeye Partners has set up 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 will be constructed on a 212-acre waterfront parcel at the mouth of Corpus Christi Bay and is aimed to serve as the primary outlet for crude oil and condensate volumes delivered off of the planned Gray Oak pipeline from the Permian Basin.
The terminal, to be constructed and operated by Buckeye, will offer 3.4 million barrels of crude oil storage capacity and two deep-water vessel docks capable of berthing very large crude carriers (VLCC).
The facility can be expanded to include over 10 million barrels of storage capacity as well as multiple additional docks and other inbound pipeline connections, the company said.
As informed, the initial construction of the terminal is supported by long-term minimum volume throughput commitments from Phillips 66 and Andeavor, and the terminal is scheduled to commence initial operations by the end of 2019.
Buckeye will own a 50 pct interest in the JV, while Phillips 66 Partners and Andeavor will each own a 25 pct interest.
“The South Texas Gateway Terminal will serve as a premier open-access deep-water marine terminal in the Port of Corpus Christi,” said Khalid Muslih, Executive Vice President of Buckeye and President of Buckeye’s Global Marine Terminals business unit.
“This project expands our presence in the important Corpus Christi market, which we believe offers strong competitive advantages for waterborne shipments of crude oil and other petroleum products from the fast-growing Permian and Eagle Ford shale plays. Recently announced improvements to our existing flagship Buckeye Texas Partners terminal, which sits along the ship channel in the Port of Corpus Christi, have expanded its leading marine terminalling capabilities.”