Martin Midstream to build Corpus Christi terminal, will take crude from Eagle Ford shale

Martin Midstream will build a new terminal at the Port of Corpus Christi, Texas to receive crude oil from the Eagle Ford shale via the recently announced Harvest Gardendale pipeline, company officials said.

As part of the project, Martin has entered into a long-term lease with the port at a new location adjacent to its existing terminal.

In conjunction with the new terminal construction, the company also announced the execution of a long-term contract with a major integrated oil company for initial capacity of the newly constructed asset.

As currently scheduled, Martin will construct over 300,000 bbl of crude oil storage at the new facility, with the ability to expand the capacity of the terminal by an additional 600,000 bbl.

This new terminal will be connected via a 24-inch diameter pipeline to both a barge dock and a deep-water marine tanker dock at the port.

A marine delivery system will be constructed with initial loading rates up to 15,000 bbl/hour. As crude production and storage volumes increase, MMLP will expand the capacity of the delivery system to 30,000 bbl/hour.

The total project cost is estimated at $25 million and is an anticipated to be in service by late 2011. Initial receipts of crude oil will arrive via truck until the Harvest Gardendale pipeline becomes operational in the first half of 2012.

Ruben Martin, CEO of Martin Midstream, said: "We are pleased to announce additional Port of Corpus Christi infrastructure and a long-term terminalling agreement with a major integrated oil company. MMLP, with these new assets, will seek to meet terminalling demand from the growing Eagle Ford shale production.

“This new facility is well-positioned for significant fee-based cash flow growth as Eagle Ford activity continues to gain momentum."

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