Enterprise and Enbridge Eye Developing Export Terminal

(January 2, 2020) — Enterprise Products Partners LP (Houston) and Enbridge Inc. (Calgary) announced Dec. 9 that their affiliates had signed a letter of intent to jointly develop a deep-water crude oil terminal in the Gulf of Mexico capable of fully loading very large crude carriers, or VLCCs.

Enterprise and Enbridge agreed to focus commercial development efforts on Enterprise’s Sea Port Oil Terminal (SPOT), a proposed deep-water project. Under the terms of the letter of intent, the two companies agreed to negotiate an equity participation right agreement whereby, subject to SPOT receiving a deep-water port license, an Enbridge affiliate could acquire an ownership interest in SPOT Terminal Services LLC, the terminal owner. The SPOT project consists of onshore and offshore facilities, including a fixed platform located about 30 nautical miles off the Brazoria County, Texas coast in approximately 115 feet of water. SPOT is designed to load VLCCs at rates of about 85,000 bbl an hour, or up to about 2 MMbbl per day.

The SPOT design also meets or exceeds federal requirements and, unlike existing and other proposed offshore terminals, is designed with a vapor control system to minimize emissions, notes Enterprise Products. Construction is subject to obtaining the required approvals.