Gibson Energy has agreed to acquire the South Texas Gateway Terminal, a crude oil export facility located on the Texas Gulf Coast, US, for a consideration of $1.1bn in cash.

In this regard, the Canadian-based liquids infrastructure company has signed an agreement to acquire 100% of the membership interests of the facility’s holding company South Texas Gateway Terminal LLC (STLLC).

The oil terminal is a joint venture between Buckeye Partners (50%), Phillips 66 Partners (25%), and Marathon Petroleum (25%).

It is located in Ingleside at the entrance of the Corpus Christi ship channel.

The liquids terminal is said to have direct pipeline connections to low-cost, long reserve-life resource supply, and very large crude carrier (VLCC) capabilities.

It facilitates the supply of North American crude oil drawn from the Permian and Eagle Ford basins to overseas markets.

The South Texas Gateway Terminal was officially commissioned and had its first vessel loaded in July 2020.

In early 2021, the final construction phase of its incremental storage facilities was completed to take the total terminalling capacity to 8.6 million barrels (mmbbl) of crude oil from 20 tanks.

The South Texas Gateway Terminal has two deep-water docks to facilitate the simultaneous loading of two VLCCs and an authorised throughput capacity of 1mmbbl/d.

Gibson Energy president and CEO Steve Spaulding said: “This transaction amplifies our high-quality infrastructure revenues and bolsters the continued growth of our distributable cash flow per share.

“To add 1 mmbbl/d of export capacity and nearly 9 million barrels of terminals storage in a highly strategic location furthers our momentum in growing Gibson’s infrastructure footprint and provides a platform for future growth with existing and new customers.”

The deal, which is subject to customary conditions such as expiration or termination of the waiting period under the US Hart-Scott-Rodino Antitrust Improvements Act, is expected to close in Q3 2023.