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

Phillips 66 Plans to Build an Offshore Crude Oil Export Terminal

Phillips 66 plans to seek permission to build an offshore crude oil export terminal near Corpus Christi. The plan is to build two offshore buoys about 27 miles east of Port Aransas, which will be supported by two underwater 30-inch crude oil pipeline. If approved, Phillips 66 would be the operator of the proposed project.

As per the plan, Bluewater Texas Terminal LLC, a Phillips 66 subsidiary, started contacting public officials about the offshore project earlier this month. The offshore terminal will be able to accommodate Very Large Crude Carriers, or VLCCs, which can haul up to 2 million barrels of crude oil in a single shipment.

The proposed project would require approval from the U.S. Maritime Administration, Texas Commission on Environmental Quality and other agencies, and in a statement, Phillips 66 reported that it is working with the Port of Corpus Christi to develop the project.

"Phillips 66 has decades of experience safely and responsibly operating similar single point mooring systems and other marine loading facilities," the company said in a statement. "Bluewater Texas would provide U.S. oil producers another outlet for their increasing volumes while also potentially reducing the need for reverse lightering and the environmental impact that those operations have on a regional level."

Source:
Chron

Kinder Morgan Sells Stake in the Proposed Texas COLT

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.

Source:
chron

Open Season Extended on 650-Mile Jupiter Pipeline

Jupiter Energy extended an open season until May 31 for the 650-mile, 36-inch Jupiter pipeline stretching from the Permian to the Port of Brownsville.

“We're very pleased with the results of the initial open season period for the Jupiter Pipeline,” said Albert Johnson, president of Jupiter Pipeline. “The supplemental period validates our belief that the interest for transportation commitments on the pipeline is as substantial as expected.”

The pipeline will be originating near Crane, Texas, and Gardendale/Three Rivers, Texas and is the only pipeline out of the Permian Basin with access to all three deep water ports in Texas (Houston, Corpus Christi and Brownsville). It is expected to be operational in fourth quarter of 2020.

It will have direct access to a fully capable VLCC loading facility off coast at Brownsville, where the Jupiter Brownsville Terminal will consist of up to 10 million barrels of storage, three docks and an offshore VLCC loading facility.

Source:
pgjonline

Dallas-Based Midstream Company to Develop New Texas Export Terminal

Texas GulfLink, a proposed deepwater crude oil export terminal near Freeport, Texas, will be developed by Dallas based Sentinel Midstream. Once completed, the facility will be capable of fully loading VLCCs.

An onshore terminal with as much as 18 million barrels of storage, an offshore 42-inch pipeline, and a manned offshore platform to facilitate port operations with two catenary anchor leg mooring single-point mooring buoys will be included in the Texas GulfLink crude oil export terminal project.

Over the course of a year, export loading rates projections will be as much as 85,000 barrels per hour, with a nominal capacity of 1.2 million barrels per day.

“Texas GulfLink will provide the United States with an economical solution to clear the over-supply barrels destined for the Gulf Coast,” said Jeff Ballard, Sentinel Midstream president and chief executive officer.

In order to justify the capital investment, the Texas GulfLink project has secured necessary commercial support. The company is preparing its submission of a formal permit with the US Maritime Administration.

Source:
OGJ

Enterprise Products Partners Looking at 100,000 Bpd Expansion

Enterprise Products Partners LP said on Wednesday that they have plans for their Seaway crude pipeline system capacity to increase to about 950,000 barrels per day from 850,000 bpd.

The company will add drag reducing agents (DRAs) to boost capacity on the Seaway 2 line by about 100,000 bpd by September. The Seaway system moves crude from Crushing, Oklahoma, to Gulf Coast refineries.

Enterprise said that they are carefully evaluating options to convert natural gas liquids pipelines to crude oil in order to alleviate pipeline constraints in the Permian Basin, among other expansion options.

Enterprise was planning on developing an offshore crude oil export terminal, according to statements made in July. The terminal would load Very Large Crude Carriers (VLCCs) off the Texas Gulf Coast.

U.S. producers and international customers are interested in the project, according to the company.

Source:
Reuters