OIL major Sinopec is evaluating two projects in the United States that could boost Gulf Coast crude oil exports and also expand storage facilities in the Caribbean, two sources familiar with the matter said yesterday, with U.S. President Donald Trump set to visit Beijing next week.

With Sino-U.S. energy trade likely to be a prominent topic during Trump’s visit, the sources said one of the projects could see Sinopec partnering with U.S. commodities trader Freepoint Commodities and U.S. private equity firm ArcLight Capital Partners. The trio is mulling building a pipeline to move shale oil from the Permian basin in Texas to the U.S. Gulf Coast for export, the sources said.

This project also includes the construction of a terminal that can load 2 million barrels of crude onboard a Very Large Crude Carrier (VLCC). This will reduce a big chunk of logistics costs incurred for U.S. crude exports, making the oil more competitive in Asia.

ArcLight and Freepoint are among the U.S. energy and commodities firms that will make up a major part of a business delegation visiting Beijing when Trump goes to China.

Sinopec, Asia’s largest oil refiner, and the U.S. firms have also been exploring an expansion of oil storage at Limetree Bay (LB) Terminals in St. Croix, U.S. Virgin Islands in the Caribbean, and restarting an idled refinery at the same site, the sources said.

In a 10-year strategic deal, Sinopec already leased 75 percent of existing crude oil storage capacity at LB Terminals.

(SD-Agencies)