Port of Corpus Christi approves lease agreement for crude oil terminal

The Port of Corpus Christi Commission has approved a 50-year lease agreement with Carlyle Group’s Lone Star Ports for the development of a crude oil export terminal on Harbor Island in the US.

The long-term lease has been agreed for 200 acres on Harbor Island to develop the petroleum export terminal.

It will feature new safety, security and environmental technologies and connect crude producers in the US with all major markets worldwide.

Carlyle Group managing director Ferris Hussein said: “The Carlyle Group is enthusiastic about our shared vision with the Port of Corpus Christi Commission to develop an environmentally safe, world-class facility that will position Corpus Christi as a vital economic engine in Texas and around the globe.

“The Harbor Island project would not be possible without the leadership shown by the Port’s commission and staff in their ongoing commitment to communities throughout the Coastal Bend region.”

The latest signing comes after Carlyle Group and the Port of Corpus Christi Authority signed an agreement last October for the crude oil export terminal development.

Designed to be the deepest-draft safe harbour crude export facility when commissioned, the onshore terminal will have two docks that can access the improved 56ft-deep ship channel.

The terminal will be capable of servicing fully laden very large crude carriers (VLCCs) that can transport up to two million barrels of oil.

For the last year, civil works for the project have been underway ahead of finalising a definitive lease agreement.

Following the signing of the new lease, the parties will now start major equipment and materials procurements, along with other construction efforts.

Port of Corpus Christi Commission chairman Charles Zahn said: “This project on Harbor Island is the next pivotal step in directing the growing crude oil production in the US to global markets via our Port of Corpus Christi.”