Port of Corpus Christi throws support behind Phillips 66 offshore oil terminal

The Port of Corpus Christi is throwing its support for a deep-water port capable of fully loading Very Large Crude Carriers behind a Texas-based company.

The port is supporting a pair of single point mooring buoy systems that will be constructed and operated by Phillips 66, which has its global headquarters in Houston. News of the project broke in national media outlets Wednesday, though no final agreement has been reached between the Port of Corpus Christi and Phillips 66.

A Phillips 66 subsidiary — Bluewater Texas Terminal LLC — submitted a permit application to the Maritime Administration on May 29 to build, own and operate the deep-water port. The project will entail the construction of onshore and offshore infrastructure, including a booster station on Harbor Island in Port Aransas and two offshore single point mooring buoy systems.

The buoy systems would be located about 21 nautical miles east of the Aransas Pass entrance to the Port of Corpus Christi, according to a statement from the Port of Corpus Christi.

"When (Phillips) 66 came and pitched us on their concept and their location and their idea, we were very keen to work with them," Port CEO Sean Strawbridge said.

The port is already looking at a marine storage terminal project for Harbor Island capable of fully loading VLCCs just inside the entrance to the Corpus Christi Ship Channel. Strawbridge said Phillips 66's proposed deep-water port would be "complementary" to the port's proposed Harbor Island project.

VLCCs are massive vessels capable of carrying 2 million barrels of crude oil. But the port is currently unable to fully load them — they must be partially loaded, then have the rest ferried out to them in the Gulf of Mexico to complete loading in a process known as lightering.

More:Port of Corpus Christi moves forward with lease to build crude oil terminal on Harbor Island

"We see that there is so much volume coming to Corpus Christi that we probably are going to need some (options)," he said. "We felt that the fact (Phillips) 66 wanted to work with the Port of Corpus Christi — which they're the only buoy that's been announced on the Texas Gulf Coast working with a public port authority — we think that's a better solution than the Trafigura solution."

A similar deep-water port project pitched by Switzerland-based commodities company Trafigura has drawn heavy opposition from the Port of Corpus Christi because of its proposed location several miles off the Padre Island National Seashore. Port officials have said the national seashore could be devastated in the event of an oil spill from Trafigura's project.

More:Chesney: Nueces County should oppose Trafigura project, not endorse Harbor Island (yet)

Trafigura representatives have said the company is committed to operating the facility in an environmentally responsible manner and within all state and federal guidelines. While the Trafigura project has been opposed by Nueces County, the port and other surrounding areas, it has drawn support from Kleberg County, U.S. Secretary of Energy Rick Perry and the Texas Alliance of Energy Producers.

Part of Trafigura's pipeline infrastructure would go through the King Ranch in Kleberg County out to the offshore buoy. It will operate outside the Port of Corpus Christi.

More:Study says Trafigura project is safe, Port of Corpus Christi disagrees

Strawbridge said that while a definitive agreement has not been reached between Phillips 66 and the Port of Corpus Christi, he expected that one would be reached in the near future. It would have to come before the port commission for final approval at that point, he said.

"We're absolutely confident," he said. "Like I said, we've been working toward definitive agreements for a number of months now. When we reach definitive agreements, we'll be taking it to the commission for their consideration and, hopefully, approval."

This is a developing story. Check back to Caller.com for updates.

Tim Acosta covers the Port of Corpus Christi, county and city government stories for the Corpus Christi Caller-Times. Consider supporting local journalism with a digital subscription to the Caller-Times.