Permian Crude Loads at New Coastal Terminal

Permian Crude Loads at New Coastal Terminal
This photo shows crude being loaded onto a tanker at South Texas Gateway. PHOTO SOURCE: Buckeye Partners, L.P.

Buckeye Partners, L.P. reported Thursday that crude oil export operations have begun at South Texas Gateway (STG), a new terminal in the Port of Corpus Christi that it owns with Phillips 66 Partners LP and Marathon Petroleum Corp.

“South Texas Gateway represents a significant investment in the Port of Corpus Christi and a long-term commitment to our customers,” remarked Khalid Muslih, executive vice president of Buckeye GP and president of Global Marine Terminals, in a written statement emailed to Rigzone.

According to Buckeye, loading of the first marine vessel began Thursday at STG after initial deliveries in June of crude oil from one of four pipelines that will serve the facility. The firm noted the start of operations marks an important milestone for it as well as the Port of Corpus Christi.

“Our employees and contractors continue their efforts to safely and efficiently complete the additional phases of construction on this project, which we expect to be fully complete by the first quarter of 2021,” continued Muslih. “This world-class facility will play a critical role in serving global energy markets from South Texas and the Port of Corpus Christi.”

Buckeye pointed out that STG is located in Ingleside at the mouth of the Corpus Christi ship channel. Along with the nearby Buckeye Texas Partners (BTP) operations, STG helps to position Corpus Christi as a top export location for U.S. energy producers to access global markets, the firm added.

“The milestone reached by Buckeye Partners L.P. on loading its first vessel at the South Texas Gateway Terminal is monumental, particularly as our nation’s economic recovery from COVID-19 gets underway,” commented Port of Corpus Christi CEO Sean Strawbridge. “The oil and gas industry has gone through a period of unprecedented demand destruction that is only now beginning to show signs of reversing. The loading of this vessel with crude from the Permian Basin is a sign that this economic downturn is changing direction.”

According to Buckeye, marine operations should ramp up through the end of 2020 at STG as additional construction phases reach completion. The company added the terminal will allow loading of up to very large crude carrier (VLCC)-sized vessels.

When STG achieves full operations, it will be able to store 8.6 million barrels of petroleum products – expandable to 10 million barrels – and handle up to 800,000 barrels per day of throughput at two deepwater docks, Buckeye stated.

Buckeye operates the STG joint venture and owns a 50-percent stake in it. Phillips 66 Partners and Marathon Petroleum each hold 25 percent through subsidiaries.

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