Friday, August 3, 2018
Enterprise Products Partners LP (Houston) is planning to develop an offshore crude oil export terminal off the Texas Gulf Coast. The terminal will be capable of fully loading very large crude carriers (VLCCs), which have capacities of about 2 MMbbl and provide the most efficient and cost-effective solution to export crude oil to the largest international markets in Asia and Europe.
Enterprise has begun front-end engineering and design and preparing applications for regulatory permitting. Based on initial designs, the project could include approximately 80 miles of 42-in.-dia. pipeline to an offshore terminal capable of loading crude at about 85,000 barrels an hour. Earlier this month Enterprise completed the second partial loading of a VLCC at its jointly owned Seaway marine terminal in Texas City. The Eagle Victoria loaded about 1.1 MMbbl of crude oil.
“On the heels of our second successful loading of a VLCC at the Texas City terminal, we are now planning to expand our capabilities to load crude oil faster and more cost-efficiently without the need for lightering vessels,” said A.J. (Jim) Teague, CEO of Enterprise’s general partner.
“Given the long-term outlook for growing supplies of U.S. crude oil production, increasing global demand requiring super tankers, and the future limitations of Gulf Coast port and lightering capacities, we are confident this project will be embraced and supported by both domestic and international customers. In addition to our best-in-class reliability, Enterprise’s crude oil supply aggregation capabilities of over 4 MMbbld, including from the Permian, Cushing, Eagle Ford, and numerous third-party connections, provide unmatched diversification, supply, and quality optionality for international markets.”
Teague added that capital and infrastructure to support the offshore export terminal project will be provided solely by private funding sources and will not be reliant, nor contingent upon, state or federal government agency financial support or infrastructure development. “We believe this would enable us to deliver this project in a timely manner once permits are granted and the project is underwritten,” he said. A final investment decision is subject to receiving the requisite state and federal permits and customer demand.
(SOURCE: The Weekly Propane Newsletter, July 30, 2018. Visit https://tinyurl.com/y9uxoln8 for subscription information.)
Enterprise has begun front-end engineering and design and preparing applications for regulatory permitting. Based on initial designs, the project could include approximately 80 miles of 42-in.-dia. pipeline to an offshore terminal capable of loading crude at about 85,000 barrels an hour. Earlier this month Enterprise completed the second partial loading of a VLCC at its jointly owned Seaway marine terminal in Texas City. The Eagle Victoria loaded about 1.1 MMbbl of crude oil.
“On the heels of our second successful loading of a VLCC at the Texas City terminal, we are now planning to expand our capabilities to load crude oil faster and more cost-efficiently without the need for lightering vessels,” said A.J. (Jim) Teague, CEO of Enterprise’s general partner.
“Given the long-term outlook for growing supplies of U.S. crude oil production, increasing global demand requiring super tankers, and the future limitations of Gulf Coast port and lightering capacities, we are confident this project will be embraced and supported by both domestic and international customers. In addition to our best-in-class reliability, Enterprise’s crude oil supply aggregation capabilities of over 4 MMbbld, including from the Permian, Cushing, Eagle Ford, and numerous third-party connections, provide unmatched diversification, supply, and quality optionality for international markets.”
Teague added that capital and infrastructure to support the offshore export terminal project will be provided solely by private funding sources and will not be reliant, nor contingent upon, state or federal government agency financial support or infrastructure development. “We believe this would enable us to deliver this project in a timely manner once permits are granted and the project is underwritten,” he said. A final investment decision is subject to receiving the requisite state and federal permits and customer demand.
(SOURCE: The Weekly Propane Newsletter, July 30, 2018. Visit https://tinyurl.com/y9uxoln8 for subscription information.)
