Two new crude pipeline projects from West Texas’ prolific Permian Basin to the Corpus Christi coastline have analysts crowing about refinery and export expansion in that city.
The Houston-based pipeline company Buckeye Partners has proposed a 400,000 barrel-per-day line from Wink and Midland to existing facilities in Corpus.
And a three-company consortium — TexStar Midstream Logistics, based in San Antonio, Castleton Commodities International, out of Connecticut, and Dallas-based Ironwood Midstream Energy — have proposed a new 590,000 barrel-per-day pipeline from Orla, Pecos, Crane, and Midland to Corpus, with a stop in Gardendale in the Eagle Ford oil field.
Both projects aim to open for business in 2019.
At least 10 pipelines with capacity of 2 million barrels per day now deliver crude from the Eagle Ford to Corpus. Only one of those lines, however, runs to the Permian, according to a new report from Morningstar Commodities Research analyst Sandy Fielden.
That, however, is set to change. “Corpus Christi is an attractive destination for incremental crude flows because it is accessible from both the Permian and Eagle Ford by pipeline,” Fielden wrote in his note. “It is also a less-congested alternative to the Houston market.”