Energy Transfer Plans to Build VLCC Capable Crude Export Facility

Energy Transfer LP was in discussions with potential shippers to build an offshore crude oil export facility in Texas capable of handling Very Large Crude Carriers (VLCCs), which can transport about 2 million barrels of crude in a single shipment, the company said on Thursday.

Chief Financial Officer Thomas Long said during a quarterly earnings call for the company that the future export facility would be connected to its Nederland, Texas, crude terminal and a final investment decision has not yet been made. The company said it expects to take at least two or three years to begin construction on the VLCC project.

"We're very excited about this," Energy Transfer President Mackie McCrea said. "It's going to be a great market opportunity for our Nederland and Permian Express systems but also more importantly, for our customers bringing volume into Nederland." The company's next step is expected to be filing for a permit with the U.S. Maritime Administration.

Data from last week showed that U.S. crude exports jumped to a monthly record of 3.16 million barrels per day in June as South Korea bought record volumes and China ramped up purchases.


Binding Supplemental Open Season Announced for Bakken Pipeline System

A binding supplemental open season to solicit additional shipper commitments for transportation service was launched by Dakota Access, LLC and Energy Transfer Crude Oil Company, LLC. Both companies are subsidiaries of Energy Transfer LP.

The transportation service is from Bakken/Three Forks play in North Dakota to storage terminals located in Patoka, Illinois and Nederland, Texas through their respective pipeline systems, which is collectively known as the ‘Bakken Pipeline System’.

Committed subscriptions made by shippers during the open season and commitments already received for future capacity during the previous open season that concluded in December 2018 will determine the incremental capacity on the Bakken Pipeline System. The open season commenced at 12:00 pm CT on 15 July, 2019.


Energy Transfer Partners Considers New Crude Pipeline in Permian Basin

Energy Transfer said in an earnings call Thursday that it is considering constructing a new crude oil pipeline from the Permian Basin to Nederland, Texas as demand for takeaway capacity continues to rise in the prolific Permian.

The pipeline company also said it brought Phase 1 of its 100,000 barrel-per-day Permian Express 3 pipeline online in the fourth quarter and expects more volumes to come online later this year. The company is evaluating a 200,000 barrel-per-day expansion on the line that flows from the Permian to Nederland.

Construction is now underway on the 24-inch segment of Energy Transfer's Bayou Bridge crude pipeline from Lake Charles to St. James, Louisiana, the company added. Commercial operations are expected to begin in the second half of 2018.

Energy Transfer is 99 percent complete with construction for the entirety of its Rover natural gas pipeline, the biggest natural gas pipeline under construction in the U.S. Full completion of the project is expected in the second quarter of this year.