Harvest Pipeline Company and Vitol have reached an agreement to explore joint development of the art crude oil terminal to be located in the Port of Corpus Christi, ahead of increased demand for crude transportation from South Texas and the Permian Basin.
The two companies agreed with the Port of Corpus Christi for the location of the terminal development and dock access. Moreover, the parties are considering the possibility to construct a private dock for the parties’ sole use at the oil terminal facility. Barrels will have access to the terminal via a new 16-inch lateral pipeline.
This project will complement Harvest’s existing South Texas business, as it will provide to Eagle Ford barrels a new terminal connection from the Harvest Midway junction.
Furthermore, this concept will offer a new waterborne outlet for the increasing number of Permian barrels that are seeking access to international markets. As more barrels flow to Corpus Christi from the Permian Basin, additional storage will be developed at the emerging Midway hub, Vitol said.
“Crude demand, particularly in emerging markets, continues to grow and U.S. shale has an important role to play in satisfying this demand. Our new pipeline and terminal will facilitate the efficient delivery of U.S. crude to global markets, thereby increasing marketing opportunities and optimizing value for U.S. producers.” mentioned Mark Couling head of Crude Oil for Vitol.
Corpus Christi LNG Project is a liquefaction project being designed for five trains with expected aggregate nominal production capacity of up to 22.5 million tonnes per annum (mtpa) of LNG.
The Corpus Christi site is located on the La Quinta Channel on the northeast side of Corpus Christi Bay in San Patricio County, Texas, on over 1,000 acres owned or controlled by Cheniere and is approximately 15 nautical miles from the coast.