Operations launched at new crude oil terminal in South Texas


Houston-based Buckeye Partners, L.P., a company with more than 6,000 miles of pipeline and owned in part by Phillips 66 Partners LP, announced Thursday that crude oil export operations have begun at South Texas Gateway , a new state-of-the-art terminal constructed to facilitate the supply of North American crude oil to global markets.

Loading of the first marine vessel was initiated today, following the first deliveries of crude oil in June from one of four pipelines that will serve STG. The start of operations marks an important milestone for Buckeye and the Port of Corpus Christi and leverages Buckeye’s core strength as a leading global terminal operator.

“South Texas Gateway represents a significant investment in the Port of Corpus Christi and a long-term commitment to our customers,” said Khalid Muslih, Executive Vice President of Buckeye GP and President, Global Marine Terminals. “Our employees and contractors continue their efforts to safely and efficiently complete the additional phases of construction on this project, which we expect to be fully complete by the first quarter of 2021.  This world-class facility will play a critical role in serving global energy markets from South Texas and the Port of Corpus Christi.”

STG, located in Ingleside at the mouth of the Corpus Christi ship channel, along with the nearby Buckeye Texas Partners operations, are leading facilities that further position Corpus Christi as a top export location for U.S. energy producers to access global markets.

“The milestone reached by Buckeye Partners L.P. on loading its first vessel at the South Texas Gateway Terminal is monumental, particularly as our nation’s economic recovery from COVID-19 gets underway,” said Sean Strawbridge, Chief Executive Officer for the Port of Corpus Christi. “The oil and gas industry has gone through a period of unprecedented demand destruction that is only now beginning to show signs of reversing. The loading of this vessel with crude from the Permian Basin is a sign that this economic downturn is changing direction.”

Marine operations are expected to ramp up through the end of this year as additional phases of construction are completed. STG’s world class connectivity and capability will allow for safe and efficient loading of up to VLCC-sized vessels and utilize state-of-the-art technologies to control air emissions.

STG is a joint venture 50 percent owned and operated by Buckeye Partners. Phillips 66 Partners LP and Marathon Petroleum Corporation, through respective subsidiaries, each have a 25 percent ownership interest. When fully operational, STG’s petroleum products storage capacity will be 8.6 million barrels, with the potential to expand to 10 million barrels, and up to 800,000 barrels per day of throughput capacity at two deepwater docks.


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