Enbridge, Oiltanking withdraw VLCC port plan

Enbridge and terminal operator Oiltanking have withdrawn their application to build a crude export terminal off the coast of Freeport, Texas, capable of loading very large crude carriers (VLCCs).

The move comes after Enbridge joined a competing VLCC project with Enterprise Products Partners near the same location.

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.

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.

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.

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.

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.

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.

The terminals will be key to the growth of oil exports, which hit a record monthly high of 3.38mn b/d in October, according to the most recent Census trade data. The agency is scheduled to release November data tomorrow.

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.

By Eunice Bridges