Bexar gives ini­tial OK to Okin in­cen­tives

Deal would ex­empt com­pany’s per­sonal prop­erty, equip­ment from taxes

San Antonio Express-News - - BUSINESS - By Joshua Fechter

Bexar County com­mis­sion­ers gave ini­tial ap­proval to a tax in­cen­tive pack­age worth about $538,000 for Euro­pean com­pany Okin BPS to build its planned U.S. head­quar­ters on the South Side.

The Euro­pean com­pany’s North Amer­i­can head­quar­ters is ex­pected to create more than 1,400 jobs in San An­to­nio and a cap­i­tal in­vest­ment of about $23 mil­lion to the Brooks mixed-use de­vel­op­ment.

“This is a game changer, I

om­ing-based Bridger Pipe­line.

Like­wise, Phillips 66 has sched­uled its planned Red Oak Pipe­line for com­ple­tion in late 2020. Red Oak would trek from the stor­age and trad­ing hub in Cush­ing to re­finer­ies and ports in Hous­ton, Beau­mont and Cor­pus Christi. The pipe­line would move 400,000 bar­rels a day.

Phillips 66 has in­creas­ingly in­vested in the pipe­line sec­tor, where there’s more room for growth. Phillips 66’s pipe­line spinoff is build­ing the Gray Oak oil pipe­line from West Texas’ boom­ing Per­mian Basin to Cor­pus Christi and Freeport.

The com­pany said it is plan­ning to ex­pand the Gray Oak sys­tem with ad­di­tional ca­pac­ity and new ori­gin sta­tions through­out much of the Per­mian.

The pipe­line sys­tem is on track to be built by the end of 2019, but the ex­pan­sion

will take un­til late 2020.

Mean­while, Mag­el­lan Mid­stream Part­ners of Tulsa, Okla., and Nav­i­ga­tor En­ergy Ser­vices of Dal­las an­nounced an open sea­son to gauge in­ter­est in a 500mile, 250,000-bar­rel-a-day pipe­line from Cush­ing to Hous­ton. The pipe­line would ter­mi­nate at Mag­el­lan’s ter­mi­nal in Hous­ton, where oil and con­den­sate could be de­liv­ered to re­finer­ies or oil ex­port ter­mi­nals in that city and in Texas City.

The oil and con­den­sate, which is an oil byprod­uct, would be sourced from the Rocky Moun­tains re­gion and North Dakota’s Bakken shale field.

If the pipe­line is built, it is ex­pected to come on­line by the end of 2020.

Mag­el­lan added that it is also eval­u­at­ing a pos­si­ble oil pipe­line from Hous­ton to Cor­pus Christi and a crude ex­port ter­mi­nal on Har­bor Is­land near Cor­pus Christi. The ter­mi­nal would be able to load Very Large Crude Car­ri­ers, or

VLCCs, which ship­pers pre­fer be­cause of the cost sav­ings re­lated to the ships’ abil­ity to trans­port larger vol­umes.

The Port of Cor­pus Christi has teamed up with as­set man­ager The Car­lyle Group to de­velop a VLCC­ca­pable oil ex­port ter­mi­nal on an­other part of Har­bor Is­land. Swiss com­modi­ties trader Trafigura has voiced in­ter­est in build­ing an off­shore VLCC-ca­pa­ble oil ex­port buoy.

The Port of Cor­pus Christi op­poses the Trafigura plan and has not voiced an opin­ion on Mag­el­lan’s pos­si­ble ter­mi­nal.

Cour­tesy il­lus­tra­tion

Okin BPS is plan­ning to build its North Amer­i­can head­quar­ters at the Brooks mixed-use de­vel­op­ment on the South Side. The head­quar­ters is ex­pected to create over 1,400 jobs here.

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