Flint Hills Resources has hired J.P. Morgan to market and explore sales options for its crude oil terminal and fuel loading operations at Ingleside, Texas.
This process is intended to identify all strategic alternatives for the future of the Ingleside operations, including a potential partnership with another company or the sale of the terminal.
Acquired in 2009, the Ingleside terminal is a gateway to global markets providing key waterborne capabilities which enable Texas crude oil to flow around the world. Strategically located at the mouth of Corpus Christi Bay on the Texas Gulf Coast and within close proximity to rich oil fields in the Eagle Ford and Permian Basin, Ingleside operations provide a tremendous location advantage for current and future oil sales.
To enhance operations on its current 115-acre site, Flint Hills Resources began a significant expansion project earlier this year to add four new storage tanks and associated piping. Total capacity will increase from 2.5 to 3.5 million barrels. Additionally, loading capacity will increase from 200 to 380 thousand barrels per day. Ingleside is connected to the Flint Hills Resources Eagle Ford pipeline system and the Midway/Taft terminal with future connections to all major pipelines including EPIC, Gray Oak (Phillips 66), Cactus II (Plains), Koch Pipeline, Nustar, and Harvest.
“Almost a decade ago, we had a vision that our Ingleside terminal would help us capitalize on the tremendous growth of crude oil imports and exports in this region,” said Jeff Ramsey, President and Chief Executive Officer, Flint Hills Resources. “We’ve achieved that vision and now with our expansion project, this marine terminal and loading operation is poised to reach the next level in the global crude oil business.”
Ingleside operates at the Port of Corpus Christi, the 4th largest port in the U.S. in total tonnage and number one in crude oil exports.
Normal operations at Ingleside will continue as planned during this exploratory period and will not impact any operational priorities, projects or initiatives.
The exploratory process does not mean that a sale is inevitable. The market will dictate the best path forward.
Source: Company Press Release