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.

Source:
reuters

ETP Announces Permian Express 3 Expansion and Possible Dakota Access Expansion

Energy Transfer Partners LP has said that it expects to expand its Permian Express oil pipeline system by up to 100,000 barrels per day and may also boost capacity on its Dakota Access crude pipeline.

ETP completed an open season during the second quarter for about 50,000 additional bbl/d on Permian Express 3, finishing the final phase of the 140,000 bbl/d project.

The Dakota Access pipeline has averaged just over 500,000 bbl/d and ETP could expand capacity by an additional 100,000 bbl/d.

There is also a new 30-inch crude oil pipeline joint venture project from the Permian Basin to the Gulf Coast expected to add at least 1 million barrels per day of capacity. Estimates have the line coming online by 2020 according to ETP statements made in May.

“Everywhere we possibly can use DRA [drag reducing agents] across the country, we are,” a senior ETP executive said.

Source:
Oil and Gas Investor