PERMIAN BASIN PETROLEUM ASSOCIATION Omar Garcia | Chief External - - PowerPoint PPT Presentation

PERMIAN BASIN PETROLEUM ASSOCIATION

September 19, 2019 Omar Garcia | Chief External Affairs Officer

• Independent political district of

the State of Texas, governed by seven commissioners

• Large industrial energy hub &

gateway to global markets

• A landowner, a land developer,

and a landlord

• Economic development agency

specializing in P3’s

The Energy Port

• f the Americas

Port of Corpus Christi Commission

Wayne Squires, Vice-Chair City of Corpus Christi Appointee Charles W. Zahn, Jr., Chair Nueces County Appointee David P . Engel City of Corpus Christi Appointee Wes Hoskins San Patricio County Appointee Richard Bowers Nueces County Appointee Richard R. Valls, Jr., Secretary City of Corpus Christi Appointee Catherine Tobin Hilliard Nueces County Appointee

• Straight 47’ deep channel, being deepened to

54’

• Quick access to the Gulf of Mexico and the

entire United States inland waterway system

• Outstanding access to overland

transportation, with on-site and direct connections to three Class I railroads: BNSF, KCS, and UP, and direct, vessel-to-rail discharge capabilities

• 28,296 acres of submerged and emerged land
• Facilities for Both Liquid and Dry Bulk
• 15 Port owned liquid docks
• 33 Customer owned liquid docks

World-Class Facilities

P o r t o f C o r p u s C h r i s t i

Economic Impact in 2018

Multimodal Connectivity

POSITIONED FOR GROWTH

$50 Billion Capital Investments ($10 Billion Foreign Direct Investments)

Texas: Largest Crude Oil Producer in U.S.

100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 Jan'16 Feb'16 Mar'16 Apr'16 May'16 Jun'16 Jul'16 Aug'16 Sep'16 Oct'16 Nov'16 Dec'16 Jan'17 Feb'17 Mar'17 Apr'17 May'17 Jun'17 Jul'17 Aug'17 Sep'17 Oct'17 Nov'17 Dec'17 Jan'18 Feb'18 Mar'18 Apr'18 May'18 Jun'18 Jul'18 Aug'18 Sep'18 Oct'18 Nov'18 Dec'18 Jan'19 Feb'19 Mar'19 Apr'19

Barrels Per Day (BPD) Domestic Exports

73% 49% 48% 64% 55% 64% 49% 51% 44% 36% 37% 20% 48% 28% 10% 25% 8% 13% 23% 2% 11% 62% 73% 68%

Hurricane Harvey

Avg Outbound 373,629 BPD Avg Out 517,505 BPD 2016 Exports 22% 76% 71% 2017 Exports 59% 77% 86% 80% Avg Out 627,219 BPD 2018 Exports 74% 78% 54% 71% 71% 76% 73% 78% 80% 2019 Exports 76% Avg Out 669,292 BPD 74% 79% 69%

Port of Corpus Christi Crude Oil Cargo Outbound/Exports (2016-2019 YTD)

Corpus Christi Export Infrastructure

New Pipeline Capacity

Gray Oak Pipeline – 950,000 BPD Cactus I – 390,000 BPD Cactus II – 600,000 BPD EPIC Pipeline – 925,000 BPD Total 2.8 million BPD Incremental Pipeline Capacity from Permian Basin

Permian Pipeline Utilization Forecast 2020

Source: Wood Mackenzie

Red Oak project will offer significant optionality for Cushing and Permian barrels

Source: Wood Mackenzie

Phillips 66 Texas Blue Water project brings direct load VLCC terminal project count to eight – with only three likely needed

Ship Channel Improvement Project

 Current Projected Costs Total = $409,673,000

• Federal = $277,168,000
• PCCA = $132,505,000

 Federal Funding Secured to Date = $95 million

• $23 million FY 2018 USACE Work Plan
• $59 million FY 2019 USACE Work Plan
• $13 million FY 2019 President’s Budget

 Federal Funding Proposed, Not Yet Ratified

• $53 million FY 2020 President’s Budget

 PCCA Funding Provided to USACE to Date = $82 million

• 78.8 million cash
• $3.2 million work in kind

C o r p u s C h r i s t i S h i p C h a n n e l I m p r o v e m e n t P r o j e c t P o r t C o r p u s C h r i s t i

Project Funding Main Channel & Barge Lane Elements

Gulf of Mexico to Harbor Island Contract 1

Harbor Island Redevelopment & Channel Deepening

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