Port of Corpus Christi, Carlyle Group Team Up For Oil Export Terminal

OILMONSTER.COM- The Port of Corpus Christi's grand plans for Harbor Island just got a little closer to reality.

Port officials on Monday announced they had entered into an agreement with global asset management firm The Carlyle Group to develop a major crude oil export terminal on Harbor Island near Port Aransas. The facility would be capable of fully loading Very Large Crude Carriers, capable of holding up to 2 million barrels of crude.

The project would make the terminal the first onshore location in the United States capable of fully loading VLCCs, a boon for the Port of Corpus Christi as the nation's leading exporter of crude oil.

Under the terms of the 30-year agreement, Carlyle will lead construction and ongoing operations of the proposed terminal on an exclusive basis. The company will also arrange for private funding to dredge a portion of the Corpus Christi Ship Channel to 75 feet in order to accommodate VLCCs heading to Harbor Island.

This solves the biggest question about the proposed 75-foot dredging project the port has previously discussed for Harbor Island, which was how to pay for it.

The terminal's construction would not require any capital outlay from taxpayers, and the port will receive "significant" regular rental payments from Carlyle Group, volume-based tariff income, land grants and other proceeds to help it fund various aspects of the port's operations, according to the release.

The terminal is expected to be operational in late 2020, port officials said, and Carlyle’s equity for its investment will come from its Global Infrastructure Fund.

Courtesy: www.caller.com