A 44-acre crude oil logistics terminal located on the Corpus Christi ship channel has been acquired by Gravity Midstream.
Located at the heart of the refining centre in Houston, Texas, US, the facility will serve traders, producers and refiners of crude oil and condensate produced in the Eagle Ford Shale and the Permian Basin.
Gravity plans to bring the terminal into service in September under the branding Gravity Oil Terminal at Corpus Christi.
President Arthur Brass says: ‘We are excited to take ownership and begin the process of commissioning and expanding this unique facility.’
Existing infrastructure at the facility includes 800,000 barrels of tankage with access to an additional planned two million barrels of storage capacity, deep water dock access and a crude processing unit with current capacity to process up to 25,000 barrels per day of heavy crude. Additionally, the facility has rail and truck loading and unloading facilities.
The company plans to convert the crude processing unit into a 35,000 barrels per day condensate stabiliser or condensate splitter.
If there is enough demand, Gravity will also build a second stabiliser or splitter to expand processing to up to 100,000 barrels per day at the facility.
Additional expansion plans include connecting the terminal to major supply pipelines originating in the Eagle Ford Shale and Permian Basin by mid-2016.
The facility was purchased from Trigeant for $100 million (€88 million).
Brass adds: ‘The terminal is a logistically advantaged facility that provides a significant outlet for oil produced in the Eagle Ford and Permian areas and will soon offer storage, processing and throughput service via all four major modes of connectivity, pipeline, deep water, truck and rail.’
Gravity was formed in 2013 with an initial private equity commitment of $150 million ((€133 million) from EnCap Flatrock Midstream.
One of three managing partners at EnCap Flatrock Bill Waldrip says: ‘We are very pleased to support this acquisition and we are currently preparing to make a substantial increase to the size of our initial commitment to the Gravity team.’