The Port of Corpus Christi Authority (the Port) has announced that it has entered into an agreement with the Carlyle Group to work exclusively to develop a crude oil export terminal on Harbor Island, connecting growing crude oil production in the US with global markets.
The terminal would be the first onshore location in the US capable of providing export service to fully laden very large crude carriers (VLCCs).
The result could produce up to a US$50 billion annual reduction to the US’s national trade deficit.
Under the terms of the agreement, the Port will work exclusively with Carlyle to bring together oil producers, marketers, pipeline operators and marine terminal operators to ensure a significant portion of the new oil production in Texas will have a gateway to international markets. As part of the agreement, Carlyle agreed to lead the construction and ongoing operations of the terminal on an exclusive basis. Carlyle also agreed that it would arrange for a private funding solution for a dredging project to bring fully-laden VLCCs to Harbor Island (at least a 75 ft main channel depth).
The terminal is expected to be operational in late 2020. Carlyle’s equity for this investment will come from its Global Infrastructure Fund.
The terminal would 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.
The project is subject to agreement on definitive documentation between the parties, satisfactory completion of due diligence and final approval from Carlyle’s investment committee.
Read the article online at: https://www.tanksterminals.com/terminals/31102018/port-of-corpus-christi-and-carlyle-to-develop-crude-oil-export-terminal/