FTAI Infrastructure inks deal with Aramco subsidiary to boost oil supply to Texas terminal

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Ground freight and logistics firm FTAI Infrastructure said that one of its subsidiaries has executed a multi-year terminal services agreement with the energy trading unit of Saudi Aramco, which includes the future receipt of new crude oil volumes at its Main Terminal in Texas.

FTAI said the subsidiary, Jefferson Energy, would receive additional supply of crude oil at its terminal in Beaumont by incorporating bi-directional flow capability into its Southern Star Pipeline, which currently moves crude oil from the Main Terminal to the Motiva Port Neches Terminal.

The bi-directional pipeline would open up the Main Terminal to crude volumes from TC Energy Marketlink Pipeline System. The betwork is a 750,000 barrels per day crude oil pipeline from Cushing, Oklahoma, to the US Gulf Coast, the company said.

US-Saudi energy trade

Last year, after acquiring Motiva Trading, Aramco launched the US unit Aramco Trading Americas.

The world’s largest oil firm has been expanding its trading activity.

In February, it started trading a US crude oil grade that helps set Brent oil benchmark.

The shale revolution of the past 15 years has made the US the world’s top oil producer and also transformed the country from a top importer to a major exporter after Washington ended a 40-year ban on foreign shipments.

Read: Aramco share sale ‘overbooked’ as oil giant looks to raise over $10bn