Buckeye forms joint venture to build a new marine terminal in Corpus Christi Bay
Buckeye Partners, L.P. (Buckeye), Phillips 66 Partners LP (Phillips 66), and Andeavor announced this week the formation of a joint venture to develop a new deep-water marine terminal in Ingleside, Texas.
The new project, which will be called the South Texas Gateway Terminal, will be constructed on a 212-acre waterfront parcel at the mouth of Corpus Christi Bay.
The facility will serve as the primary outlet for crude oil and condensate volumes delivered from the newly planned Gray Oak pipeline from the Permian Basin.
Buckeye will build and operate the facility, which will have the storage capacity to hold 3.4 million barrels of crude oil. It will also be connected to the Gray Oak pipeline and have two deep-water vessel docks capable of berthing very large crude carrier petroleum tankers. Over time, the facility could be expanded to include over 10 million barrels of storage capacity as well as additional docks.
Buckeye will own a 50 percent interest in joint venture while oil and gas company Phillips 66 and petroleum refiner Andeavor will each own a 25 percent stake. It is expected to begin operations by the end of 2019.
“The South Texas Gateway Terminal will serve as a premier open-access deep-water marine terminal in the Port of Corpus Christi,” said Khalid Muslih, executive vice president of Buckeye and president of Buckeye’s Global Marine Terminals business unit. “The terminal will provide customers with logistics solutions that connect the region’s rapidly growing crude oil production with advantaged access to global markets. Buckeye is extremely pleased to be partnering with two other leading integrated energy firms in Phillips 66 Partners and Andeavor and believes this partnership offers tremendous opportunity for future development and growth of the South Texas Gateway Terminal.”
He said it expands Buckeye’s presence in the Corpus Christi market and provides competitive advantages for waterborne shipments of crude oil and other petroleum products from the
Permian and Eagle Ford basins.
“This combined marine terminal presence in Corpus Christi will provide our customers with advantaged last mile solutions, including unmatched connectivity to two recently announced Permian Basin pipeline expansions. We believe that these assets represent a competitive advantage for Buckeye and position us at the forefront of the fast-growing U.S. crude oil export movement,” Muslih said.
