Magellan Midstream Partners may partner with Sentinel Midstream on plans to build a deepwater crude oil export terminal.
According to S&P Global Platts, if the companies do establish a partnership, Sentinel would still lead the Texas GulkLink project, while Magellan would build the pipeline to connect its large East Houston storage and distribution system to the offshore terminal.
The facility will be located off the coast of Freeport, Texas, and will be capable of fully loading VLCC vessels. It will include an onshore oil storage terminal connected by a 42-inch pipeline to a manned offshore platform 30 miles off the Gulf Coast.
From the platform oil will be transported to two Single Point Mooring buoys to allow for VLCCs to receive two million barrels of crude oil with loading rates up to 85,000 barrels per hour.
Texas GulfLink is one of four offshore oil terminal projects with applications pending review under the US Maritime Administration.