The Port of Corpus Christi Authority has partnered with private equity firm The Carlyle Group (Carlyle) to develop a crude oil export terminal on Harbor Island.
Image: Port of Corpus Christi, Carlyle to build oil export terminal on Harbor Island. Photo courtesy of Carlo San/Freeimages.com.
The oil export terminal will enable the Port of Corpus Christi Authority to connect growing crude oil production in the US with global markets.
It is expected to strengthen the Port’s position as the preeminent global crude oil export hub.
With a capability to offer export service to fully-laden Very Large Crude Carriers (VLCCs), the terminal will be the first to be located onshore in the US.
An access to VLCCs at the Port of Corpus Christi is expected to allow the US oil producers, pipelines, their supply chains and customers to reach global markets.
Carlyle’s Global Infrastructure team managing director Ferris Hussein said: “Carlyle appreciates the steadfast, prescient leadership provided by the Port of Corpus Christi Authority in advancing this project. Providing VLCC access at the Port is of critical importance to the United States, and we will collaborate with all stakeholders to ensure such service is provided.”
The oil export terminal is anticipated to bring thousands of direct and indirect jobs as well as billions in incremental economic activity to the City of Corpus Christi.
It terminal will include the development of at least two loading docks on Harbor Island as well as crude oil tank storage inland across Redfish Bay on land secured by Carlyle.
Under the terms of the agreement with the Port of Corpus Christi, Carlyle agreed to lead the construction and ongoing operations of the Terminal on an exclusive basis.
Besides, Carlyle has agreed to arrange a private funding solution for a dredging project to bring fully-laden VLCCs to Harbor Island.
The terminal is expected to become operational in late 2020.
Port of Corpus Christi chief executive officer Sean Strawbridge said: “A project of this magnitude further underscores the vital role the Port of Corpus Christi plays in the global energy markets and as an important economic generator for the great state of Texas.
“In partnering with such an experienced and well-capitalized firm as The Carlyle Group, the market should take notice and have a high degree of confidence of this project’s success.”