Flint Hills May Divest Texas Terminal
Flint Hills Resources reported Wednesday afternoon that it has hired J.P. Morgan to market and explore sales options for its crude oil terminal and fuel loading operations at Ingleside, Texas.
According to Flint Hills, the process is meant to “identify all strategic alternatives” for the future of the Ingleside complex. Options may include a potential partnership with another company or selling the terminal, the company noted in a written statement emailed to Rigzone.
Flint Hills acquired the terminal, located at the mouth of Corpus Christi Bay on the Texas Gulf Coast, in 2009. In its written statement, the company describes the facility – accessible to oil production from the Eagle Ford and Permian Basin – as a “gateway to global markets providing key waterborne capabilities which enable Texas crude to flow around the world.”
Earlier this year, Flint Hills launched a project to add four new storage tanks and associated piping at Ingleside. The company stated that the expansion will increase total storage capacity from 2.5 to 3.5 million barrels and raise loading capacity from 200,000 to 380,000 barrels per day. The Ingleside complex boasts access to Flint Hills’ Eagle Ford pipeline system and the Midway/Taft terminal and will eventually link to the EPIC, Gray Oak (Phillips 66), Cactus II (Plains), Koch Pipeline, NuStar and Harvest pipeline systems, added Flint Hills.
“Almost a decade ago, we had a vision that our Ingleside terminal would help us capitalize on the tremendous growth of crude oil imports and exports in this region,” Jeff Ramsey, Flint Hills’ president and CEO, commented. “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.”
Flint Hills added that normal operations will continue as planned at Ingleside during the exploratory period, which the company stated will not affect any operational priorities, projects or initiatives.
“The exploratory process does not mean that a sale is inevitable,” the company concluded. “The market will dictate the best path forward.”
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