Enterprise Products Partners to Build Massive Billion Dollar Export Terminal

Enterprise Products Partners announced on Tuesday that it is planning to construct a $1 billion to $2 billion oil and export terminal off the Texas coastline to accommodate the world’s largest crude-carrying vessels.

A sea based terminal solves a critical problem for very large crude carriers, or VLCCs, which have recently been heading to Texas instead of the Panama Canal due to recent widening of the canal.

Regardless, Texas ports aren’t able to have ships fill at capacity due to water depth, so Enterprise plans on building pipelines to run about 80 miles from its Houston-area network to an offshore terminal where water is naturally deeper.

It is a project that could take years to be completed. Enterprise expects the state and federal permitting process could take roughly a year before construction can even begin.

“Enterprise is making sure U.S. production doesn’t get gridlocked at the Gulf Coast,” said Colton Bean, an energy analyst with Tudor, Pickering, Holt & Co. in Houston. “The refining system isn’t really expanding much in North America, so exports are your one key relief valve.”

Source:
Houston Chronicle