Enterprise Products Partners and Enbridge have executed a letter of intent to jointly develop a deepwater crude oil terminal in the Gulf of Mexico capable of loading VLCCs.
The companies have agreed to focus commercial development efforts on Enterprise's Se Port Oil Terminal deepwater crude oil terminal. Under the terms of the letter of intent, the companies agreed to negotiate an equity participation agreement whereby, subject to SPOT receiving a deepwater port license, an Enbridge affiliate could acquire an ownership interest in SPOT Terminal Services, which owns SPOT.
The project consists of 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 85,000 barrels per hour, or up to 2 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 minimize emissions. Construction of the terminal is subjects to 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 work with Enbridge to jointly develop a deepwater port in the Gulf of Mexico to support growing exports of US crude oil. We value Enbridge's expertise and resources as we focus our collective commercial development efforts on making the SPOT project a reality.'
Al Monaco, president and CEO of Enbridge, adds: 'This collaboration leverages our jointly owned and highly competitive Seaway system and capitalizes on each of our capabilities to drive out highly capital efficient export infrastructure for our customers. For Enbridge, it is also a key part of our priority to provide our North American light and heavy crude customers with highly efficient access to the Houston-area refining markets and growing global demand.'
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