Adding to US export capacity

GULF ACTION

EXPORTS • WORK CONTINUES TO ENHANCE HANDLING CAPACITY FOR HYDROCARBON EXPORTS FROM THE US GULF, WITH TWO NEW FACILITIES THAT OFFER MORE EFFICIENT OPERATIONS

LATE DECEMBER SAW the commissioning of two new assets in Texas, designed to further expand export capacity for US hydrocarbons, as producers continue to increase production despite the market uncertainties driven by the Covid-19 pandemic and volatile oil and gas prices.

In the crude oil sphere, Buckeye Partners commissioned the second deepwater dock at its South Texas Gateway (STG) terminal at the mouth of the Corpus Christi Ship Channel and loaded its first cargo onto a VLCC. The terminal can now berth and load two tankers simultaneously, effectively doubling crude oil export capacity. Work is continuing to complete the new tankage at the site, due by the end

TEXAS REMAINS THE FOCUS OF INVESTMENT IN

TERMINAL CAPACITY AND LOADING FACILITIES of the first quarter 2021, which will expand storage capacity to 8.6m bbl with a throughput capacity of 800,000 bpd.

“We are very excited to have achieved these important milestones at our new facility, enhancing STG’s and Buckeye’s ability to serve global energy markets,” says Buckeye Partners president/CEO, Clark C Smith. “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 US energy producers.”

Sean Strawbridge, CEO of the Port of Corpus Christi, comments: “The completion of the second dock and loading of its first VLCC cargo at the STG Terminal are significant milestones for Buckeye and the Port of Corpus Christi. 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.”

STG is a joint venture between operator Buckeye (50%), Phillips 66 Partners and Marathon Petroleum (25% each).

GAS FROM THE GULF Meanwhile in Houston, Enterprise Products Partners and Navigator Holding completed their joint-venture ethylene export facility at Morgan’s Point with the commissioning of a 30,000-tonne refrigerated storage tank. The first cargo was loaded aboard the 21,000-m³ ethylene carrier Navigator Atlas on 23 December. The new tank facilitates faster loading and allows the terminal to reach its nameplate throughput capacity of 1m tonnes per year.

“Our fully commissioned Morgan’s Point ethylene export facility is the largest and most reliable supply source for waterborne ethylene in the world,” says AJ ‘Jim’ Teague, co-CEO of Enterprise’s general partner. “The terminal is backed by the supply of the entire US Gulf Coast via our growing ethylene midstream services, which include our open-access storage and market hub in Mont Belvieu. Our ethylene export, storage, and transportation services highlight our vision to provide midstream services for the petrochemicals industry that allow our customers to focus on their unique competitive advantages in the US and in growing international markets.”

“The commissioning of the Morgan’s Point terminal in the face of a year-long pandemic is testimony to the high-quality talent and dedicated team assigned to this project,” adds David Butters, executive chairman of Navigator Holdings. “We congratulate all employees and third-party contractors for the superb job in completing the export terminal on time and under budget. We expect the terminal to operate at capacity, utilising Enterprise’s vast interconnected ethylene platform, and to create strong demand for Navigator’s fleet of specialised ethylenecapable vessels.” www.buckeye.com enterpriseproducts.com