Offshore Texas Oil Export Facility Proposed
Sentinel Midstream has unveiled plans to develop a deepwater crude oil export terminal near Freeport, Texas, that could fully load very large crude carrier (VLCC) vessels.
In a written statement emailed to Rigzone, Dallas-based Sentinel reported that its proposed Texas GulfLink project would boast:
- An onshore terminal with up to 18 million barrels of storage
- An offshore 42-inch pipeline
- A manned offshore platform to facilitate port operations with two catenary anchor leg mooring (CALM) single point mooring (SPM) buoys
The company also noted that projected export loading rates will be up to 85,000 barrels per hour, with nominal capacity of 1.2 million barrels per day over the course of a calendar year.
“Texas GulfLink will provide the United States with an economical solution to clear the over-supply barrels destined for the Gulf Coast,” Jeff Ballard, Sentinel’s president and CEO, stated. “We have compiled a team of industry’s leading professionals who possess unique experience in construction and operations of deepwater ports and are well positioned to leverage that experience as prudent operators. Our team of seasoned professionals is committed to developing Texas GulfLink with a specific focus on exceeding industry standards for safety and environmental protection.”
According to Sentinel, the project has been developed in conjunction with multiple stakeholders – including federal, state and local agencies – and has won necessary commercial support to justify the capital investment. The company also stated that it is preparing its submission of a formal permit with the U.S. Maritime Administration (MARAD) – the federal agency that licenses deepwater ports.
“Sentinel has assembled the best-in-class team, with deep experience developing and operating deepwater export solutions,” said Chris Rozzell, managing partner of Cresta Fund Management, the Dallas-based private equity firm that is providing project financing. “We are excited to partner with them as they bring this critical facility to the Gulf Coast market.”
Currently, the United States is home to just one deepwater crude oil port facility: the Louisiana Offshore Oil Port (LOOP). In July 2018, Trafigura US Inc. submitted its application with MARAD for a deepwater port license for its proposed Texas Gulf Terminals facility near Corpus Christi. That same month, Enterprise Products Partners L.P. announced that it was planning to develop its own offshore crude oil export terminal off the Texas Gulf Coast.
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