The port of Corpus Christie in Texas is becoming the main focus of US crude oil exports, even though the first crude oil cargo in 40 years only left there in 2016 (see video above).
Local news reports in Corpus Christie focus on the surprise turnaround in strategy by one of the biggest oil companies in the region, Occidental Petroleum (or Oxy as it is known locally).
Oxy chief executive, Vicki Hollub, told local reporters that “The Permian (Basin) is now the foundation and the growth of our company,” Hollub said. “The bulk of our growth capital will continue to go to the Permian Resources business.”
Which was the explanation for Oxy selling Ingleside Energy Center Terminal, a former naval base which the company bought in 2012 for US$82M.
The current export capacity of the terminal is about 300,000 barrels of oil a day, but Oxy announced plans to expand to 750,000 barrels per day, and with dredging to load tankers up to two million barrels capacity.
The switch in emphasis on upstream resources means that Oxy has sold the terminal to San Antonio private equity firm EnCap Flatrock Midstream. The terminal holding company in Moda Midstream.
Meanwhile, Oxy is also selling the Centurion pipeline system that extends from the Permian to the Cushing, to EnCap Flatrock Midstream. The combined deal is worth US$2.6Bn.
In separate news, crude oil trader Trafigura is focusing on the Texas Gulf Terminals Project, a VLCC offshore loading system some 15 miles outside Corpus Christie, which would avoid the increasing tanker traffic on the busy channel to the inland terminals.
This is the latest long-term investment from Trafigura, following a reported US$1Bn investment in the marine export terminal and condensate splitter in Corpus Christi to enable loading of Suezmax tankers.
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