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Gravity Midstream buys crude oil terminal

Gravity Midstream acquires crude oil terminal on the Corpus Christi Ship Channel
Gravity Midstream buys crude oil terminal

Gravity Midstream, announced that its wholly-owned subsidiary, Gravity Midstream Corpus Christi, has closed on the acquisition of a 44-acre crude oil logistics terminal located on the Corpus Christi Ship Channel in the heart of the area’s refining center. The fully-permitted facility will serve traders, producers and refiners of crude oil and condensate produced in the Eagle Ford Shale and the Permian Basin. Gravity expects to bring the terminal into service in September 2015 under the name Gravity Oil Terminal (GOTAC) at Corpus Christi

“The GOTAC terminal is a logistically advantaged facility that provides a significant outlet for oil produced in the Eagle Ford and Permian areas and will soon offer storage, processing and throughput service via all four major modes of connectivity: pipeline, deep water, truck and rail,” said Arthur J. Brass, president of Gravity Midstream.

Existing infrastructure at GOTAC includes 800,000 bbl of tankage with access to an additional planned 2 MMbbl of storage capacity, deepwater dock access, a crude processing unit (CPU) with current capacity to process up to 25,000 b/d of heavy crude, and rail and truck loading and unloading facilities. Gravity expects to convert the CPU into a 35,000 b/d condensate stabilizer or condensate splitter. If customer demand is sufficient, Gravity will build a second stabilizer or splitter, enabling the company to process up to 100,000 b/d at GOTAC.

The GOTAC terminal offers current pipeline connectivity to neighboring CITGO and Valero refineries. Gravity plans to connect the terminal to major supply pipelines originating in the Eagle Ford Shale and Permian Basin by mid-2016. GOTAC will have access to an adjacent deepwater dock that will serve Aframax crude tankers, favored because of their ability to serve most ports in the world.

Gravity Midstream Corpus Christi, acquired the facility from Trigeant, for US$100 million. The transaction was part of a Chapter 11 plan approved by a Florida bankruptcy court in May 2015. Steve Canner and Ben Mintz, partners at Kaye Scholer LLP’s New York office, served as lead legal counsel to Gravity.

Image: facility/Gravity Midstream

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