Enbridge and Enterprise Products Partners are moving forward with plans to develop and market a deep-water offshore crude oil export terminal capable of fully loading VLCCs.
Under the terms of the Letter of Intent (LOI), Enbridge and Enterprise will work to finalise an equity participation agreement. The agreement would allow Enbridge an option to purchase an ownership interest in Enterprise’s Sea Port Oil Terminal (SPOT), subject to SPOT receiving a deep-water port license. The parties intend to initially focus commercial development efforts on seeking customer support to fully utilise SPOT. As the crude oil export market continues to grow, Enbridge anticipates that its Texas COLT deep-water port will be well positioned to proceed.
“We are pleased to be teaming up with Enterprise to bring large scale, integrated export solutions to the market,” said Enbridge President and CEO Al Monaco. “This collaboration leverages our jointly owned and highly competitive Seaway system and capitalizes on each of our capabilities to drive out highly capital efficient export infrastructure for our customers. For Enbridge, it’s also a key part of our priority to provide our North American light and heavy crude customers with highly efficient access to the Houston-area refining markets and growing global demand.”
Enbridge also announced that it will advance the development of a new wholly-owned Jones Creek Crude Oil Storage Terminal. The terminal will have ultimate capability of up to 15 million barrels of storage; access to crude oil from all major North American production basins and will be fully integrated with the Seaway Pipeline system to allow for access to Houston-area refineries, existing export facilities and other facilities in the future.
Seaway announced on November 25, 2019, a plan to proceed with an open season to secure interest in a potential 200,000 barrels per day expansion of the system. Seaway is well-positioned as a highly competitive option to transport Cushing volumes to a fully integrated network of pipelines, storage facilities, and export terminals along the U.S. Gulf Coast.
“The combination of the proposed Seaway expansion, the development of our Jones Creek Storage Terminal and our expanded offshore VLCC, positions us nicely and advances our strategy to enhance and extend North America’s premiere crude oil value chain – one that stretches from western Canada, to the Midwest and through to the Midcontinent and U.S. Gulf Coast. It also fits very well with our broader goal to further build out our export infrastructure position in both crude oil and natural gas,” said Monaco.