Sentinel Proposing Texas VLCC Crude Export Terminal
- Business & Finance
Texas-based midstream solutions provider Sentinel Midstream became the latest company to unveil designs for the development of a new deepwater terminal near Freeport, Texas.
The proposed Texas GulfLink deepwater crude oil export terminal would be capable of fully loading very large crude carrier (VLCC) vessels.
According to Reuters, the company’s move comes on the back of seven other proposals for the development of VLCC-loading facilities on the Gulf coast. Some analysts and executives believe not all proposed terminals would be built, the report said.
Sentinel Midstream’s solution would include an onshore terminal with up to 18 million barrels of storage, an offshore pipeline, and a manned offshore platform with two single point mooring (SPM) buoys.
Projected export loading rates will be up to 85,000 barrels per hour, Sentinel said, with a nominal capacity of 1.2 million barrels per day over the course of a calendar year.
“Texas GulfLink will provide the United States with an economical solution to clear the over-supply barrels destined for the Gulf coast,” said Sentinel Midstream president and CEO Jeff Ballard.
Es explained, Sentinel Midstream developed Texas GulfLink in conjunction with multiple stakeholders over the past year, including federal, state, and local agencies. The project has secured necessary commercial support to justify the capital investment and is preparing its submission of a formal permit with the United States Maritime Administration (MARAD).
Project financing is being provided by Cresta Fund Management, according to the company.
Texas COLT, Enterprise Products Partners, Trafigura’s Texas Gulf Terminals, Carlyle Group, and Buckeye Partners are all vying for the construction of offshore mega-terminals capable of loading up VLCCs.