Harvest Pipeline Company and Vitol have signed an agreement to jointly develop a crude oil terminal in the Port of Corpus Christi.
The agreement is in response to increased demand for crude transportation from South Texas and the Permian Basin as well as to help satisfy the growing need for export capacity along the Texas Gulf Coast.
The project will complement Harvest’s existing South Texas business by providing Eagle Ford barrels a new terminal connection from Harvest Midway junction. It will also provide a new waterborne outlet for the growing number of Permian barrels that are seeking access to international markets.
As more barrels flow to Corpus Christ from the Permian Basin, additional storage will be developed at the emerging Midway hub.
Mark Couling, head of crude oil for Vitol, says: ‘Crude demand, particularly in emerging markets, continues to grow and US shale has an important role to play in satisfying this demand. Our new pipeline and terminal will facilitate the efficient delivery of US crude to global markets, thereby increasing marketing opportunities and optimising value for US producers.’
The companies have reached an agreement with the port for the location of the terminal development and dock access. They are also reviewing the option of constructing a private dock for the parties’ sole se at the oil terminal facility.
Barrels will have access to the terminal via a new 16-inch lateral pipeline.