A German oil and chemical storage group recently purchased 220 acres in Texas City with plans to build a new deepwater terminal, company officials announced.
Oiltanking North America, which already operates in Texas City, recently purchased the land near its existing property at 2800 Loop 197 S., Mayor Matt Doyle said.
“They’re already going to work on that,” Doyle said.
The subsidiary of Hamburg-based Marquard & Bahls will construct a new terminal, called the Texas Independent Deepwater Expansion terminal, which will eventually allow for the storage of 10 million barrels of crude oil, petroleum and gas products, officials said.
“Upon completion of the initial development phase, the terminal will form a viable export/import/blending hub alternative in the Houston market by creating a premier logistics platform with significant flexibility and optionality,” officials said.
The company’s existing Texas City operations contain enough storage room for 3.5 million barrels of petroleum products, officials said.
Oiltanking has invested heavily in the Texas City area, earlier acquiring a terminal from Oiltanking Galveston County on about 200 acres of land for expansion opportunities, officials said.
That terminal is to the northwest side of Oiltanking’s existing marine terminal, officials said.
“The port of Texas City is home to a vast refinery market and several chemical companies,” officials said. “It’s short sailing time to open water and uncongested marine traffic position makes the port a highly valuable player in the Houston market.”
Insiders have speculated that developing the new deepwater terminal will cost about $900 million, but no one directly connected to the project would speak on the record by deadline Friday.
The Texas City development is the second major news to hit the port city recently.
Late last year, a liquefied natural gas export plant developer, which earlier nixed plans to build a multibillion-dollar facility on Pelican Island, signed an agreement to lease 1,000 acres on Shoal Point in Texas City.
The lease agreement between The Woodlands-based NextDecade, the city of Texas City and the Texas General Land Office is a significant coup for Texas City, where leaders have long sought to make the 1,000 or so acres of Shoal Point more productive.
The land is just east of Texas City’s major petrochemical complex and only about six miles from where the Houston Ship Channel opens to the Gulf of Mexico.
The company will not make lease payments on the 1,000 acres of waterfront property in Texas City if a facility it plans to build reaches $2 billion in taxable value, Doyle said of the terms of the agreement.
The incentive is in exchange for the prospect of attracting a development that would create thousands of construction jobs, more than 100 full-time positions and bring more property tax revenue into city coffers.
If completed as proposed, it would be the most expensive property in Texas City. Marathon’s Galveston Bay Refinery is valued at about $1 billion.