Port of Corpus Christi Readies VLCC Terminal
The fourth-largest port in the United States in total tonnage, Port of Corpus Christi has leased land where it hopes to build the nation's first export terminal to load very large crude carriers (VLCC).
The Port of Corpus Christi Commission approved today a long-term (50-year) lease agreement with Lone Star Ports, a joint venture between the Carlyle Group and the Berry Group, for approximately 200 acres on Harbor Island to develop a state-of-the-art petroleum export terminal.
Featuring the latest in safety, security and environmental technologies, the facility will connect U.S. crude producers with all major international markets.
The lease agreement between the Port of Corpus Christi Authority and Lone Star Ports will provide significant accretive value in the Port’s annual operating revenues, and the project is expected to create more high-wage jobs and more economic prosperity for Port Aransas, Nueces County, and throughout Texas.
Lone Star Ports’ facility on Harbor Island is designed to be the deepest-draft safe harbor crude export facility in the nation when commissioned. Immediately upon completion, the facility’s two docks will have access to the improved 56’ ship channel depth, making it the United States’ first and only onshore terminal capable of fully loading Suezmax vessels and nearly full loading VLCCs.
Last month, the U.S. Army Corps of Engineers (USACE) awarded the first dredging contract for the Corpus Christi Ship Channel Improvement Project to the largest U.S. dredging company, Great Lakes Dredge and Dock Company (GLDD), to deepen the channel to a depth of 56’ from the Channel entrance to Harbor Island, and a planned depth of 54’ throughout the rest of the harbor.
“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, Chief Executive Officer for the Port of Corpus Christi. “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 centers for generations to come.”
“This project on Harbor Island is the next pivotal step in directing the growing crude oil production in the United States to global markets via our Port of Corpus Christi,” said Charles W. Zahn, Jr., Port of Corpus Christi Commission Chairman.
