Enterprise Products Partners is planning to build an offshore crude oil export terminal off the Texas Gulf Coast. The terminal would be able of loading Very Large Crude Carriers (VLCC), which have capacities of approximately 2 million barrels .
A front-end engineering and design (FEED) has already started, with the company preparing applications for regulatory permitting. The project could include about 80 miles of 42-inch diameter pipeline to an offshore terminal capable of loading and exporting crude oil at approximately 85,000 barrels per hour.
A.J. “Jim” Teague, chief executive officer of Enterprise’s general partner, stated:
Given the long-term outlook for growing supplies of U.S. crude oil production, increasing global demand requiring super tankers, and the future limitations of Gulf Coast port and lightering capacities, we are confident this project will be embraced and supported by both domestic and international customers.
Funds to finance this project will come from private capital and ‘would not be reliant nor contingent upon state or federal government agency financial support or infrastructure development’, Mr. Teague informed. This aims to ensure delivery if the project in a timely manner once permits are granted and the project is underwritten.
A final investment decision will be subject to receiving the necessary state and federal permits and customer demand.
According to EIA, currently most US Gulf Coast petroleum ports are unable to fully load larger and more cost-effective vessels affects prices for US crude oil exports. Using a number of smaller ships requires a wider price spread between US crude oil and international crude oil prices to balance the lower economies of scale and costs associated with reverse lightering and partial loadings.
