Harvest Pipeline Company, an affiliate of Hilcorp Energy Company, and Vitol Inc. have reached an agreement to explore joint development of a state of the art crude oil terminal to be located in the Port of Corpus Christi. As part of the project, a new 16-inch lateral pipeline will also be built to transport crude oil to the terminal.
“The agreement between Harvest Pipeline Company and Vitol is an extraordinary opportunity to help satisfy the growing need for export capacity along the Texas Gulf Coast,” said Sean Kolassa, President of Harvest Pipeline Company. “We are excited for the project to begin moving forward.”
This project will complement Harvest Pipeline’s existing South Texas business by providing Eagle Ford barrels a new terminal connection from the Harvest Midway junction, along with a new waterborne outlet for the growing number of Permian barrels seeking access to international markets. In addition, as more barrels flow to Corpus Christi from the Permian Basin, additional storage will be developed at the emerging Midway hub.
“Crude demand, particularly in emerging markets, continues to grow and U.S. shale has an important role to play in satisfying this demand,” said Mark Couling, head of Crude Oil for Vitol. “Our new pipeline and terminal will facilitate the efficient delivery of U.S. crude to global markets, thereby increasing marketing opportunities and optimizing value for U.S. producers.”
Harvest Pipeline and Vitol have already signed an agreement with the Port of Corpus Christi for the location of the terminal development and dock access. Currently, the companies are reviewing the option of constructing a private dock for their sole use at the oil terminal facility.