America’s main oil-export hub sees demand picking up from China this year even as a resurgence in the coronavirus clouds the outlook for consumption in the world’s biggest importer. Texas’s Port of Corpus Christi, home to eight oil export facilities, is laying the groundwork by deepening part of its waterway as two of its customers add storage. With crude stored aboard tankers in Asia being drawn down, the port is pinning its hopes on U.S. exports being able to make up the shortfall.
Although Corpus Christi was forced to slash its budget last year after oil prices went into freefall, it still managed to see two new export terminals open up, boosting crude outflows to a record 1.9 million barrels a day. The Far East is a key destination for exports and China was the one bright spot in terms of oil demand, though alarm bells have recently been sounded in light of recent virus flare-ups.
Moda Midstream LLC plans to raise the storage capacity at its Ingleside facility by 1 million to almost 16 million barrels by March, according to Chief Executive Officer Bo McCall. Mercuria-backed Pin Oak wants to add 2 million barrels of tanks to its 4-million-barrel capacity Corpus Christi terminal by April, CEO Corey Leonard said.