Pin Oak Corpus Christi has given an engineering, procurement, and construction (EPC) contract to Strike for the construction of nine directionally-drilled pipelines under the Corpus Christi ship channel.


Image: Pipeline system. Photo: courtesy of supakitmod/

One of the nine pipelines will become part of Pin Oak’s recently signed pipeline interconnection agreement with Gray Oak Pipeline, LLC (“Gray Oak”), a joint venture pipeline system owned 75 percent by Phillips 66 Partners and 25 percent by Andeavor.

The Gray Oak Pipeline will provide crude oil transportation from West Texas to destinations in the Corpus Christi and Sweeny/Freeport markets.

Pin Oak construction head Lex Moyers said: “Strike has demonstrated its ability to execute on challenging pipeline projects across the country, and we are excited to partner with them to deliver these new pipeline connections to the Port of Corpus Christi’s recently built Oil Dock 14.”

The directionally-drilled pipelines are expected to be in service in Q1 2019.

Pin Oak is focused on expanding the gateway for crude oil exports out of the Port of Corpus Christi to enable producers in the Permian and Eagle Ford Basins to broaden their reach to end-markets around the globe.

The pipeline connectivity at Pin Oak will provide producers and marketers critical access to a dedicated, purpose-built Suezmax dock operation designed to load vessels at 40,000 barrels-per-hour between several million barrels of Pin Oak’s storage infrastructure.

Pin Oak CEO C. Mike Reed said: “We are pleased to offer the market a new logistics solution with our presence on the Corpus Christi Ship Channel. We look forward to replicating the strategy we employed in Louisiana at our Mt. Airy terminal, which was recently sold, where we constructed and delivered tier-one infrastructure to our customers.”

Pin Oak chief operating officer Alex Jachmich said: “We believe our extensive pipeline connectivity will provide our current customers with the access they need to efficiently bring Permian crude oil to the seaborne market, and it creates another opportunity for Pin Oak to help our customers optimize their supply chains by leveraging our experience as a premier third-party terminal operator.”

Concurrent with the installation of these pipelines across the ship channel, Pin Oak will begin construction on over two million barrels of crude oil storage under a long-term contract, with the ability to expand its capacity on an as-needed basis.

In addition to the crude storage and export capabilities, Pin Oak currently operates multiple pipeline connections to nearby refineries, nearly one million barrels of existing storage capacity, a vacuum distillation unit, a polymer modified asphalt plant, rail loading and unloading facilities, and a truck rack.

Pin Oak, formerly known as Gravity Midstream Corpus Christi, LLC, was acquired in late 2017 by a partnership between Dauphine Midstream, LLC (“Dauphine”) and Mercuria Energy Group Ltd. (“Mercuria”). Dauphine and Mercuria, through their partnership, also built and operated Pin Oak Terminals, LLC, a marine terminal with approximately four million barrels of contracted storage capacity in Mt. Airy, Louisiana.

Source: Company Press Release