The Port of Corpus Christi Authority has entered into an agreement with the Carlyle Group to develop a crude oil export terminal on Harbor Island, the first onshore location in the U.S. capable of providing export service to fully-laden Very Large Crude Carriers (VLCCs).
The port authority hopes that VLCC access would open the global markets for U.S. oil producers, reducing the national trade deficit by USD 50 billion per annum.
Under the terms of the agreement, the port will work 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 reliable gateway to international markets.”
Carlyle agreed to lead the construction and ongoing operations of the terminal on an exclusive basis. The company will arrange for a private funding solution for a dredging project to bring fully-laden VLCCs to Harbor Island, making the main channel at least 75-foot deep.
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.
The terminal is expected to be operational in late 2020.