Martin Midstream Partners L.P. announced the construction of a new terminal at the Port of Corpus Christi, Texas to receive crude oil from the Eagle Ford shale via the recently announced Harvest Gardendale Pipeline. As part of the project, the Partnership has entered into a long-term lease with the Port at a new location adjacent to the Partnership’s existing terminal.
In conjunction with the new terminal construction, the Partnership also announced the execution of a long-term contract with a major integrated oil company for the initial capacity of the newly constructed asset.
As currently scheduled, the Partnership will construct over 300,000 barrels of crude oil storage at the new facility. In addition, the Partnership has the ability to expand the capacity of the terminal by an additional 600,000 barrels. This new terminal will be connected via a 24-inch diameter pipeline to both a barge dock and a deep-water marine tanker dock at the Port.
A marine delivery system will be constructed with initial loading rates up to 15,000 barrels per hour. As crude production and storage volumes increase, MMLP will expand the capacity of the delivery system to 30,000 barrels per hour. The total project cost is estimated at $25.0 million and is an anticipated to be in service by late 2011. Initial receipts of crude oil will arrive via truck until the Harvest Gardendale Pipeline becomes operational in the first half of 2012. The Partnership expects the terminal to be accretive to distributable cash flow upon completion of the pipeline.
Ruben Martin , President and Chief Executive Officer of Martin Midstream GP LLC, MMLP’s general partner said, “We are pleased to announce additional Port of Corpus Christi infrastructure and a long-term terminalling agreement with a major integrated oil company. MMLP, with these new assets, will seek to meet terminalling demand from the growing Eagle Ford shale production. This new facility is well-positioned for significant fee-based cash flow growth as Eagle Ford activity continues to gain momentum.”
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Source: Martin Midstream Partners L.P., July 6, 2011; Image: Port of Corpus Christi