Trafigura, Phillips 66 Create JV to Develop Deepwater Port in Texas
- Business & Finance
Phillips 66 and Trafigura Group have formed a 50/50 joint venture, Bluewater Texas Terminal, to develop an offshore deepwater port project located approximately 21 nautical miles east of the entrance to the Port of Corpus Christi.
As informed, the proposed project, to be constructed by Phillips 66, will consist of up to two single point mooring buoys capable of fully loading very large crude carriers (VLCCs) to export crude oil.
“We salute Phillips 66 and Trafigura for agreeing to partner in a single point mooring export facility, and for recognizing the port as an integral part of the success of this ambitious yet much needed capability,” Sean Strawbridge, Chief Executive Officer for the Port of Corpus Christi, commented.
Specifically, the Bluewater Texas joint venture would combine the market position that Trafigura has built in the United States as an exporter and marketer of crude oil with Phillips 66’s commercial expertise, existing infrastructure network on the U.S. Gulf Coast, and operating experience.
The JV is working with the Port of Corpus Christi Authority to provide a safe and environmentally sustainable infrastructure for the export of crude oil to global markets.
The project is currently in the permitting stage. The joint venture owners expect to make a final investment decision later this year, according to Trafigura.
Phillips 66 submitted its application to Maritime Administration (MARAD) for a Deepwater Port License under the Bluewater Texas franchise in mid-2019. Trafigura withdrew its application submitted in mid-2018 to the U.S. Department of Transportation for a MARAD Deepwater Port License to develop an offshore terminal named Texas Gulf Terminals near the Padre Island National Seashore. The reduction in SPM projects has occurred in other areas of the Texas coast, likely as a measure of capital discipline and market forces.