The Project outlines a comprehensive strategy for sourcing crude oil from the U.S. Gulf Coast via non-U.S. flag VLCCs, utilizing crude oil export terminals in Corpus Christi, Texas. Lucayan has initiated discussions with a prominent Corpus Christi-based industrial developer to facilitate this crucial logistical aspect, which when completed will help to ensure smooth transportation and loading operations for the Project.
On the commercial front, Lucayan has devised a robust plan for refining product disposition, aiming to market light products such as LPG locally within the Bahamas and across the Caribbean, while directing jet fuel and ultra-low sulfur diesel primarily towards U.S. Atlantic Coast markets. Naphtha production is slated to be exported to Far East Asia via VLCCs to meet the region's escalating demand for petrochemical feedstocks. At the same time, the heavy component of the barrel will be refined into very low sulfur fuel oil, targeted as a premium bunker fuel.
In tandem with commercial strategies, Lucayan has established preliminary agreements with The Mosko Group as the general contractor for the Project, laying the groundwork for a smooth project execution. Further, discussions with Bahamian agencies and government officials have advanced, encompassing critical aspects such as property leases, tax concessions, and labor considerations. The finalization of approvals and terms awaits the identification of an owner/operator to serve as the Project's primary sponsor, allowing Lucayan to take a pivotal step toward formalizing the Project's progression through official channels.