Occidental Petroleum (Oxy) has agreed to sell its oil export terminal near Corpus Christi and a West Texas pipeline network for a combined $2.6bn.
Moda Midstream is to acquire the Ingleside Energy Center (IEC) Terminal for crude exports, and Lotus Midstream will purchase the Centurion pipeline system that extends from the Permian to the Cushing, Okla. oil storage and transportation hub.
The transactions are expected to close in the third quarter of 2018, subject to customary closing conditions.
IEC is strategically located in Ingleside, Texas, near the mouth of Corpus Christi Ship Channel with minimal transit times to the Gulf of Mexico. The terminal links Eagle Ford Shale and Permian Basin production to key domestic and international markets. IEC will be connected directly to multiple “next generation” long-haul crude pipelines that allow for batching and segregation of crude oil deliveries at some of the most competitive tariffs available to shippers.
IEC is designed to handle a wide range of vessels, including VLCCs. It has approximately 2.1 million barrels of oil storage capacity and three deep-water berths for crude oil. The facility currently is undergoing expansion to add storage capacity and infrastructure for contracted customer growth and to facilitate additional development.
As part of the transaction, Moda also acquired LPG storage, berths and infrastructure, certain crude oil pipeline assets and offsite logistics locations. Looking forward, Moda plans to expand services through controlled-growth development for additional hydrocarbons expected to reach IEC in the coming years.
Meanwhile, Lotus Midstream is to acquire the Centurion pipeline system. Integrated assets also include two crude oil storage terminals strategically located in the Midland, Texas, and Cushing, Oklahoma market centres with a combined storage capacity of approximately seven million barrels and more than 125 truck stations. The system is designed to connect the nation’s premier supply basin to key market centres.
The Southeast New Mexico gathering system includes more than 50 miles of crude oil gathering pipelines with connections to the Centurion pipeline system and a third-party intra-basin system and related infrastructure.
9th August 2018