Corpus Christi agrees long lease for oil exports

Apr 05 2019


The Port of Corpus Christi Commission has approved a 50-year lease agreement with Lone Star Ports, a joint venture between the Carlyle Group and the Berry Group.

The lease will be for about 200 acres on Harbor Island on which a petroleum export terminal will be built.

Featuring the latest in safety, security and environmental technologies, the facility will connect US crude producers with all major international markets, the port said.

Lone Star Ports’ facility on Harbor Island will be the deepest-draft safe harbour crude export facility in the US when commissioned. Immediately upon completion, the facility’s two docks will have access to the improved 56 ft ship channel depth, making it the US’ first and only onshore terminal capable of fully loading Suezmaxes and part loading VLCCs.

In February, the US Army Corps of Engineers (USACE) awarded the first dredging contract for the Corpus Christi ship channel improvement project to the largest US dredging company, Great Lakes Dredge and Dock Company (GLDD).

This contract calls for the deepening of the channel to 56 ft from the entrance to Harbor Island, and a planned depth of 54 ft throughout the rest of the harbour.

“This long-term commitment is testament to the significance of the Corpus Christi gateway for American energy exports, which are expected to triple in the next decade,” said Sean Strawbridge, Port of Corpus Christi CEO. “A 50-year lease agreement with the Carlyle Group and the Berry Group joint-venture company, Lone Star Ports, is not only complementary to our existing marine terminal infrastructure but also positions the Port of Corpus Christi to be the preferred outlet for US-produced crude exports serving all major global demand centres for generations to come.”

“The Carlyle Group is enthusiastic about our shared vision with the Port of Corpus Christi Commission to develop an environmentally safe, world-class facility that will position Corpus Christi as a vital economic engine in Texas and around the globe,” said Ferris Hussein, The Carlyle Group managing director. “The Harbor Island project would not be possible without the leadership shown by the port’s commission and staff in their ongoing commitment to communities throughout the Coastal Bend region. This partnership is a great vote of confidence in Carlyle and our abilities to deliver generation changing infrastructure projects, and we take that responsibility seriously.”

Civil works have been underway for the past year ahead of finalising a definitive lease agreement, including the demolition of existing dock structures from a previous decades old Exxon crude import terminal on Harbor Island. The signing of the new lease enables all parties to commence major equipment and materials procurements and other construction needs.

 



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