Carlyle Group has quit the project to build a proposed $1bn crude export terminal in Texas, it has been announced.
The US-listed private equity group told Port of Corpus Christi that it would no longer proceed with the investment in Lone Star Ports LLC, which has proposed the tanker export facility.
It is one of at least nine crude oil export terminals proposed for the US Gulf to load shale oil onto VLCCs.
Carlyle said in a statement Berry Group was “now the sole owner of Lone Star,” but did not comment on why it dropped out of the project, which it said continues to be actively developed.
Lone Star in September filed a lawsuit against Carlyle in a Texas state court, alleging the private equity firm breached its contract to jointly pursue the project and asking the court to award it full ownership, reported Reuters. The lawsuit also sought unspecified damages.
The tie-up between Carlyle and the Port of Corpus Christi was announced a year ago this week amid much fanfare.
The terminal would include two VLCC berths and be able to handle up to 20 large tankers per month, according to its backers.
Other similar projects under development have the backing of the likes of commodities trader Trafigura as well as pipeline operators Magellan Midstream Partners, Tallgrass Energy and Phillips 66.
In July, Chevron gave its backing to a new VLCC-capable crude export terminal set to be built in the US Gulf of Mexico being developed by Enterprise Product Partners.
The US shale oil boom has prompted a surge in oil exports, which last week hit 3.25 million barrels per day (bpd).
At present VLCCs can only partially load alongside at ports in the US Gulf of Mexico before having to be 'topped up' by aframaxes via ship-to-ship (STS) transfers.
