Corpus Christi and Moda Midstream are well-positioned to benefit as the U.S. and world economies recover from COVID-19. Moda’s Ingleside Energy Center terminal is the largest export terminal in the Gulf Coast’s hottest market, can partially load more economically efficient Very Large Crude Carriers (VLCCs), appears to enjoy the fastest loading rates in the Gulf Coast, and may be able to expand its draft to 52 feet by late 2021/early 2022, enhancing its competitive advantages. Perhaps just as important as the particular advantages of its Ingleside facility are the broader trends that Moda is riding. Exporters and downstream buyers appear to prefer Corpus Christi, while VLCC-capable projects will probably remain stuck in the water.
Corpus Christi is the new King of U.S. crude oil exports
Construction of the Cactus II, EPIC, and Grey Oak pipelines cumulatively added over 2.1 million barrels per day (MMBPD) of deliverable capacity to Corpus Christi in 2019 and 2020. The results have been pretty staggering: Corpus was the 3rd most prolific crude exporter in July 2019. Now, over half of all U.S. crude exports are sent out from the mid-Texas port.