The Port of Corpus Christi is already one of the nation’s leaders in exporting U.S. crude oil. Soon, there will be even more crude headed to our region.
Two new pipeline projects were announced this week. They’re each joint ventures between Houston-based Phillips 66 and two separate pipeline companies.
The Liberty Pipeline will move crude oil from the Rockies and Bakken areas in the Northern U.S. to Cushing, Oklahoma. The Red Oak pipeline system will carry different grades of crude through Cushing and the Permian Basin in West Texas to Corpus Christi.
CEO Sean Strawbridge says this marks a significant first for the Port of Corpus Christi.
“Eagle Ford Shale and Permian Basin crude is what’s been moving through the Port of Corpus Christi. But with these new pipelines now the Port of Corpus Christi can for the first time handle other North American crude slates,” Strawbridge told KRIS 6 News.
“That means that we’re not just about Texas oil. We’re about American oil.”
Strawbridge says that’s a win for port customers, especially those who are overseas. They will have more options for buying American crude at a time when demand is higher than ever.
“The United States grew its energy production faster than any other country ever in 2018,” Strawbridge explained. “That’s absolutely a huge milestone for this nation, and Corpus Christi is certainly experiencing the benefits of that momentous growth.”
According to Strawbridge, these announced pipeline projects are expected to triple or quadruple crude oil volumes at the port over the next five years. That will lead to more investment in infrastructure, which should lead to a local economic boost.
“That’s great for the South Texas Coastal Bend because that means more jobs and more economic prosperity.”
Pending permits and other regulatory approvals, the new pipelines could be in service as early as the first quarter of 2021.