The U.S. Gulf Coast is swiftly becoming a cramped metroplex of new and planned LNG export facilities. Fact is our ports are getting mighty crowded. And between historic crude oil production and several pipelines nearing completion between West Texas and the Gulf, a new bottleneck is starting to emerge. But true to our oil and gas ingenuity, a solution is forthcoming to ship more oil supplies to global markets. Welcome to the Great American Horserace to build crude oil terminals offshore.
RMR today is following the latest announcement from Canada-based Enbridge and Houston-based Enterprise Products that will again join forces to develop the Sea Port Oil Terminal (SPOT) 31 nautical miles off the Brazoria Co., Texas, coast in approximately 115 feet of water. The SPOT will be designed to accommodate Very Large Crude Carriers capable of loading 85,000 barrels of crude per hour, or up to 2 MMBbls per day.
Enterprise in November also announced a binding open season beginning December 16 to expand capacity on its 670-mile Seaway Pipeline from 850,000 Bbls to more than 1,050,000 Bbls per day. The open season will conclude February 14, 2020. The Seaway stretches from the Cushing, Okla., storage hub to the Texas City, Texas Terminal and Distribution System on the Gulf. The Seaway system offers access to a fully integrated midstream network of pipelines, storage facilities, and export terminals along the Gulf and connectivity to every refinery in Houston, Freeport, Texas City, and Beaumont/Port Arthur.
The SPOT is among eight other oil export terminals vying for offshore Gulf Coast ports that will require miles of marine pipeline, time and patience. Not all will be approved. For its part, Enterprise looks to follow the Sea Port Oil Terminal project with a second deepwater port off the coast of Freeport, 50 miles west of the SPOT. The company also plans to develop its proposed Jones Creek Crude Oil Storage Terminal, which will be integrated with the Seaway Pipeline system and offer 15 MMBbls of crude oil storage.
What do you think?