<article><p class="lead">Enbridge and terminal operator Oiltanking have withdrawn their application to build a crude export terminal off the coast of Freeport, Texas, capable of loading very large crude carriers (VLCCs). </p><p>The move comes after Enbridge joined <a href="http://direct.argusmedia.com/newsandanalysis/article/2030740">a competing VLCC project</a> with Enterprise Products Partners near the same location. </p><p>The US Maritime Administration (MARAD) has cancelled all actions related to the processing of the Enrbidge-Oiltanking project, known as the Texas Crude Offshore Loading Terminal, or Texas Colt, according to agency filings. </p><p>Enbridge said today that it would consider re-filing the application for Texas Colt if market demand for additional export capacity grows in the future.</p><p>Enbridge and Enterprise last month executed a letter of intent to jointly develop the Sea Port Oil Terminal (SPOT) project, a deepwater terminal off the coast of Freeport designed to load VLCCs. The companies plan to negotiate an agreement that would allow Enbridge to buy into SPOT after the project receives a deepwater license from US regulators.</p><p>Enterprise made a final investment decision on SPOT last year after signing term contracts for crude transport, storage and marine services with Chevron, a key oil producer in the Permian basin.</p><p>SPOT includes two crude pipelines running from the port to the shore. Two single-point mooring buoys will be able to load and export oil at about 85,000 bl/hour. </p><p>Several other companies — including Phillips 66, Trafigura, Tallgrass Energy and Sentinel Midstream — are also weighing offshore oil ports in the US Gulf coast as demand grows for exporting US crude.</p><p>The terminals will be key to the growth of oil exports, which hit <a href="http://direct.argusmedia.com/newsandanalysis/article/2028858">a record monthly high</a> of 3.38mn b/d in October, according to the most recent Census trade data. The agency is scheduled to release November data tomorrow. </p><p>Currently, only one US port is able to fully load a VLCC — the Louisiana Offshore Oil Port (Loop) about 20 miles (32km) off the coast from Grand Isle, Louisiana.</p><p class="lead"><i>By Eunice Bridges</i></p></article>
