Crude oil exports have begun from the second deepwater dock at the South Texas Gateway (STG) terminal, according to Buckeye Partners LP, the terminal’s 50% owner.
With the second dock now complete, STG can accommodate the simultaneous berthing and loading of two very large crude carrier (VLCC) vessels, Buckeye said last Wednesday.
STG is in Ingleside, at the mouth of the Corpus Christi Ship Channel in South Texas.
Subsidiaries of Phillips 66 Partners LP and Marathon Petroleum Corp. each hold 25% stakes in STG.
The terminal’s marine facilities are now fully operational, with construction of storage facilities set to conclude by the end of March, Buckeye said. Once fully operational, STG would boast 8.6 million bbl of petroleum products storage capacity, with the potential to expand to 10 million bbl.
Combined throughput capacity of the two deepwater docks upon completion would be 800,000 b/d.
“STG’s new terminal, alongside our nearby Buckeye Texas Partners facility, will be instrumental in providing our customers with cutting-edge logistics solutions and in reinforcing the role of the Port of Corpus Christi as a top export location for U.S. energy producers,” said Buckeye CEO Clark C. Smith.
CEO Sean Strawbridge of the Port of Corpus Christi, added, “As Texas moves into the next phase of economic recovery from the Covid-19 pandemic, partnerships like those between the Port of Corpus Christi and its customers such as STG are critical to the continuance of American leadership in the global energy marketplace.”
U.S. petroleum exports averaged 3.63 million b/d for the week ended Dec. 25, up from 3.1 million b/d in the previous week, the Energy Information Administration said in its latest Weekly Petroleum Status Report.
However, the figure was down from 4.46 million b/d in the comparable week a year ago.
Rystad Energy is forecasting that the global crude oil market will remain oversupplied through April 2021, before swinging to a supply deficit the following month as the Covid-19 vaccine is distributed and pandemic restrictions are eased.
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