rss icon Subscribe
desktop mobile

Corpus Christi Crude Exports Boom

© Brent Coulter / Adobe Stock

By Collin Eaton and Devika Krishna Kumar

U.S. crude exports from Corpus Christi, Texas, have surged to a record in recent weeks, often surpassing hubs such as Houston and Beaumont, Texas, thanks to faster-than-expected infrastructure additions.

The infrastructure boom at Corpus Christi helped push crude exports there to a weekly record of 1.59 million barrels per day (bpd) in late December, more than doubling levels that held for the first eight months of last year, and above Houston's 2019 peak of 1.36 million bpd, according to vessel-tracking firm ClipperData.

The heavy flows suggest that fears of a bottleneck that would impede U.S. exports have not materialized.

"Those (export) numbers are truly astonishing, and at times, Corpus volumes have accounted for more than half of all crude exports moving out of the U.S. on a weekly basis," said John Zanner, senior strategist at Uplift Energy Strategy.

The four-week average of overall U.S. crude exports reached a record 3.72 million barrels per day (bpd) in the week ended Dec. 27, according to the U.S. Energy Information Administration.

Analysts had expected a crude bottleneck in the Permian Basin to shift to the Gulf Coast as three new pipelines opened last year. New flows out of the nation's biggest oil field were expected to overwhelm export capacity in Corpus Christi and weigh on regional prices.

But the rush of crude has been absorbed following last year's addition of almost 2 million bpd of inbound pipeline capacity and 5 million barrels of storage capacity in Corpus Christi, according to market intelligence provider Genscape.

Analysts expect flows to rise further as three new pipelines from the Permian Basin to the U.S. Gulf Coast begin full service in the first half of 2020. The lines are owned by EPIC Midstream, Plains All American Pipeline LP and Phillips 66 Partners LP.

Another 18 million barrels of storage capacity were under construction in the Corpus Christi area in the week to Jan. 3.

Waterborne trading dominates Corpus Christi, in contrast to Houston markets where the established grade trades at Magellan's East Houston terminal. Corpus prices have on average traded 50 cents to $1 per barrel below West Texas Intermediate (WTI) crude at Magellan East Houston, or MEH, traders and analysts said


(Reporting by Collin Eaton and Devika Krishna Kumar; Editing by Matthew Lewis)

Jan 15, 2020

 

Tankers

Guyana's First-Ever Oil Cargo Sets Sail for the U.S

Photo courtesy of Hess

A vessel carrying about 1 million barrels crude oil from Guyana set sail on Monday for the United

Dee4 Adds Vessel, Appoints New Partner

Jens Christensen. Photo: Dee4 Capital

The Danish private equity firm investing in shipping, Dee4 Capital, announced the takeover of its

US Refiners Grab HSFO on Back of IMO 2020

© Fotos von Schiffen / Adobe Stock

U.S. refiners are scooping up cheap high-sulfur fuel oil for processing from Russia and the Baltic

Ports

Brasco, APM Terminal Pact for Offshore Support

Image: APM Terminals

Brasco, a part of the Brazil's provider of integrated port and maritime logistics and supply chain

Verdane Invests in Danelec Marine

Photo: Danelec Marine

Northern European growth equity investor  Verdane Capital has taken a majority stake in the

Digitalization Key for Port Operators to Survive and Thrive

© Suriyapong / Adobe Stock

As the demand for goods continues to rise, the need to move a higher number of containers quicker

Maritime Apps