Kinder Morgan confirmed in a Monday afternoon statement that the company has sold its stake in a proposed offshore crude oil export terminal in the Gulf of Mexico known as Texas COLT to Enbridge, the lead developer in the project.
"Given the ongoing commitment required to move this project forward through the regulatory phase and, after an internal review within Kinder Morgan, it was determined that continuing with the project does not align with our strategic priorities," the company said in a statement.
Texas COLT was launched as a joint venture of Enbridge, Kinder Morgan and German marine terminal operator Oiltanking to accommodate Very Large Crude Carriers, or VLCCs. It was proposed to be built in an area of the Gulf of Mexico about 40 miles south of Freeport.
Enbridge officials said in a statement that the joint venture is moving forward without Kinder Morgan and will still be able to provide multiple varieties of U.S. crude oil for export.
"The COLT partnership, which combines Enbridge's leading North American asset portfolio with an international petroleum terminaling company in Oiltanking, continues to be central to the strength of the Texas COLT proposal," Enbridge stated.