President Trump has a plan for U.S. energy dominance, and it starts with a small pipeline in Texas.
He recently approved a permit for a petroleum pipeline that will run across the border into Mexico. Once it's done, the pipeline will export 2 percent of U.S. petroleum products, help balance trade, and create jobs. It is expected to have a big impact for the Coastal Bend, Texas, and the United States.
The 46-mile, cross-border pipeline is being built by San Antonio-based NuStar Energy. It will haul more than 100-thousand barrels a day of gasoline, diesel and other petroleum products into Mexico from south Texas.
"Big demand for it, and we are proud and happy to be part of that story," Jarl Pedersen, Chief Commercial Officer for the Port of Corpus Christi, said.
Pedersen says the project will directly impact the Coastal Bend.
"It creates jobs at refineries, creates jobs in the production areas. So it's just a good way to involve the business here," he said.
The local business boost is only enhanced by a huge demand for refined products in Mexico.
"The investments in the refineries in Mexico have not been able to keep up with the demand growth. so recently 50 percent or more of the refined products has to be imported. A lot of that comes from Corpus Christi," Pedersen said.
The pipeline will also increase Texas' role in U.S. trade.
"What more exporting can do is really help our trade balance," Pedersen said. "We are importing a lot, but we want to export more."
However, this pipeline tied to U.S. energy dominance would not be possible without Mexico's 2014 energy reform, which opened the market to private companies. It is something that is also spurring on more projects.
"I don't think that's going to be the ultimate project. There will be other projects, but it's part of the future," Pedersen said.
NuStar Energy is in the early development stages of the pipeline project and currently negotiating with different customers to move refined products into Mexico. Reps for the company tell KRIS 6 News the presidential permit is an important step in moving those agreements forward.
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