Enterprise Products Partners and Chevron USA have signed long-term agreements supporting the development of Enterprise's Sea Port Oil Terminal in the Gulf of Mexico.
The SPOT project comprises onshore and offshore facilities, including a fixed platform located 30 nautical miles off the Brazoria County, Texas, coast in 115 feet of water. SPOT is designed to load VLCCs at rates of around 85,000 barrels per hour, or two million barrels per day. The SPOT design also meets or exceeds federal requirements and, unlike existing and other proposed offshore terminals, is designed with a vapour control system to minimise emissions.
The long-term agreements with Chevron support Enterprise's final investment decision. The construction of the facility is subject to the required approvals and licenses from the federal Maritime Administration, which is currently reviewing the SPOT application.
A.J. 'Jim' Teague, CEO of Enterprise's general partner, says: 'We are very pleased to announce these agreements with Chevron. As a result, we are announcing our final investment decision for our offshore crude oil terminal, subject to government approvals.
'The SPOT facility provides opportunity to significantly expand our export capacity and access multiple market centers as we increase our crude oil produced out of the Permian,' adds George Wall, president of Chevron Supply and Trading.
As domestic crude oil and NGL production continues to outstrip US demand and marine terminals approach full utilisation, projects like SPOT and the expansion of Enterprise's LPG, ethane and petrochemical capabilities will be essential to balancing the market and meeting global demand for US production.
A new deepwater midstream frontierRegulatory update for US tank terminal operators Capturing hidden storage opportunities Make room for the boom From short to long - the US oil revolution Optimising the US Gulf Coast energy potential Storage stability amid a mixed production picture in the Americas Storage for Europe's energy transition Storage for a growing product market Should the industry rethink storage tank fire protection