Flint Hills Resources is exploring sales options for its crude oil terminal and fuel loading operations at Ingleside, Texas.
The company has hired J.P. Morgan to market the terminal and the process is intended to identify all strategic alternatives for the future of the Ingleside operations, including a potential partnership with another company or the sale of the terminal.
The terminal, which was acquired in 2009, is a gateway to global markets providing key waterborne capabilities which enable Texas crude oil to flow around the world. It is strategically located at the mouth of Corpus Christi Bay on the Texas Gulf Coast and within close proximity to rich oil fields in the Eagle Ford and Permian Basin.
The company began a significant expansion project earlier in 2019 to enhance operations by adding four new storage tanks and associated piping. Total capacity will increase from 2.5 to 3.5 million barrels. Additionally, loading capacity will increase from 200 to 380 thousand barrels per day. Ingleside is connected to the Flint Hills Resources Eagle Ford pipeline system and the Midway/Taft terminal with future connections to all major pipelines including EPIC, Gray Oak (Phillips 66), Cactus II (Plains), Koch Pipeline, Nustar and Harvest.
Jeff Ramsey, president and CEO, Flint Hills Resources, says: 'Almost a decade ago, we had a vision that our Ingleside terminal would help us capitalise on the tremendous growth of crude oil imports and exports in this region. We've achieved that vision and now with our expansion project, this marine terminal and loading operation is poised to reach the next level in the global crude oil business.'
The company says that the 'exploratory process does not mean that a sale is inevitable. The market will dictate the best path forward'.
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