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Released April 12, 2024 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Amid protest from environmental advocates, midstream-focused Enterprise Products Partners LP (NYSE:EPD) (Houston, Texas) said it finally has the greenlight to move forward with plans for what could be the largest oil export terminal along the U.S. Gulf Coast.
Enterprise received a license from the U.S. Maritime Administration for its Sea Port Oil Terminal (SPOT), an offshore facility that would be capable of loading 2 million barrels of oil per day (BBL/d). That would be the largest oil export terminal in the country, potentially boosting deliveries by about 25% from current levels. Subscribers to Industrial Info's Global Market Intelligence (GMI) Terminals Project and Plant databases can learn more from a detailed project report and plant profile.
Over the four-week period ending April 5, the country exported 3.95 million BBL/d on average. A ban on U.S. crude oil exports was lifted in 2015.
Enterprise plans to build the offshore facility in shallow waters about 30 nautical miles off the coast of Texas. It would be manned 24 hours per day, and it would be capable of loading tankers as large as the Very Large Crude Carrier (VLCC), which struggles to make it deeper inland.
The company said the facility would be built with emissions in mind. By reducing the operational risk from practices such as reverse lightering, where crude oil is delivered via multiple ships onto larger carriers, pollution will be low relative to other facilities.
"Considering that as many as eight smaller vessels are required during the reverse lightering process, SPOT offers a safer alternative and reduces the potential for accidents and spills," said A.J. "Jim" Teague, co-chief executive officer of Enterprise's general partner. "At full capacity, SPOT would eliminate more than 900 ship-to-ship transfers in federal waters annually."
Enterprise had to fend off challenges from environmental groups, such as the Sierra Club, that are wary of spills and other potential hazards. The Fifth Circuit Court of Appeals, however, ruled the federal government had "adequately considered the environmental consequences" before signing off on SPOT.
Devorah Ancel, a senior attorney for the Sierra Club, said the court's decision contrasted with broader efforts in the energy transition.
"It is in the national interest to halt, not promote, the proliferation of fossil-fuel dependence through expanded crude exports that will increase oil spill risk and emissions of cancer-causing, climate-disrupting pollution, which SPOT would generate on a massive scale," she said.
A record of decision from the federal government shows officials had met with concerned state and federal representatives, tribal leaders, members of the general public and elected officials, to vet concerns over the project before the COVID-19 pandemic.
"The exhaustive analysis associated with the project and continuous responses to requests for information from the various agencies produced more than 30,000 pages of documentation," Enterprise stated.
Once built, the facility could offer access to more than 40 different grades of crude oil, including Midland WTI, which is now part of the basket of crudes that make up the global benchmark, Brent.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Enterprise received a license from the U.S. Maritime Administration for its Sea Port Oil Terminal (SPOT), an offshore facility that would be capable of loading 2 million barrels of oil per day (BBL/d). That would be the largest oil export terminal in the country, potentially boosting deliveries by about 25% from current levels. Subscribers to Industrial Info's Global Market Intelligence (GMI) Terminals Project and Plant databases can learn more from a detailed project report and plant profile.
Over the four-week period ending April 5, the country exported 3.95 million BBL/d on average. A ban on U.S. crude oil exports was lifted in 2015.
Enterprise plans to build the offshore facility in shallow waters about 30 nautical miles off the coast of Texas. It would be manned 24 hours per day, and it would be capable of loading tankers as large as the Very Large Crude Carrier (VLCC), which struggles to make it deeper inland.
The company said the facility would be built with emissions in mind. By reducing the operational risk from practices such as reverse lightering, where crude oil is delivered via multiple ships onto larger carriers, pollution will be low relative to other facilities.
"Considering that as many as eight smaller vessels are required during the reverse lightering process, SPOT offers a safer alternative and reduces the potential for accidents and spills," said A.J. "Jim" Teague, co-chief executive officer of Enterprise's general partner. "At full capacity, SPOT would eliminate more than 900 ship-to-ship transfers in federal waters annually."
Enterprise had to fend off challenges from environmental groups, such as the Sierra Club, that are wary of spills and other potential hazards. The Fifth Circuit Court of Appeals, however, ruled the federal government had "adequately considered the environmental consequences" before signing off on SPOT.
Devorah Ancel, a senior attorney for the Sierra Club, said the court's decision contrasted with broader efforts in the energy transition.
"It is in the national interest to halt, not promote, the proliferation of fossil-fuel dependence through expanded crude exports that will increase oil spill risk and emissions of cancer-causing, climate-disrupting pollution, which SPOT would generate on a massive scale," she said.
A record of decision from the federal government shows officials had met with concerned state and federal representatives, tribal leaders, members of the general public and elected officials, to vet concerns over the project before the COVID-19 pandemic.
"The exhaustive analysis associated with the project and continuous responses to requests for information from the various agencies produced more than 30,000 pages of documentation," Enterprise stated.
Once built, the facility could offer access to more than 40 different grades of crude oil, including Midland WTI, which is now part of the basket of crudes that make up the global benchmark, Brent.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
