Gravity Midstream Corpus Christi, LLC, has completed the purchase of a 44-acre crude oil logistics terminal located on the Corpus Christi Ship Channel in Texas.
The facility was acquired from bankrupt refinery company Trigeant, Ltd. for $100 million as part of a Chapter 11 plan approved by a Florida bankruptcy court in May 2015.
Parent company Gravity Midstream, LLC, said that the fully permitted facility is expected to start operating in September 2015, serving traders, producers and refiners of crude oil and condensate produced in the Eagle Ford Shale and the Permian Basin.
The facility will be known as the Gravity Oil Terminal at Corpus Christi (GOTAC).
Existing infrastructure at GOTAC includes 800,000 barrels of tankage with access to an additional planned 2 million barrels of storage capacity, deep water dock access, a crude processing unit (CPU) with current capacity to process up to 25,000 barrels per day (bpd) of heavy crude, and rail and truck loading and unloading facilities.
Gravity is planning to convert the CPU into a 35,000 bpd condensate stabilizer or condensate splitter. Depending on customer demand, it may also build a second stabilizer or splitter, enabling the company to process up to 100,000 bpd at GOTAC.
The terminal currently offers pipeline connectivity to neighboring CITGO and Valero refineries. Gravity said it plans to add connections to major supply pipelines originating in the Eagle Ford Shale and Permian Basin by mid-2016. GOTAC will also have access to an adjacent deep water dock to serve Aframax crude tankers.
"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.