Canadian energy transportation firm Enbridge and Enterprise Products Partners have agreed to jointly establish a deepwater crude oil terminal in the Gulf of Mexico.
According to the agreement signed by the affiliates of both companies, the new terminal will facilitate the loading of very large crude carriers (VLCCs).
Enbridge and Enterprise will focus on the commercial development on Enterprise’s Sea Port Oil Terminal (SPOT) deepwater crude oil terminal.
Once SPOT acquires a deepwater port license, Enbridge affiliate will have an option to purchase an ownership stake in SPOT Terminal Services, which manages SPOT.
SPOT project includes onshore and offshore facilities such as fixed platform situated approximately 30 nautical miles off the Brazoria County, Texas coast.
SPOT can load VLCCs at rates of approximately 85,000 barrels an hour or up to approximately two million barrels a day.
To reduce emissions, the SPOT deepwater crude oil terminal has a vapour control system.
Enterprise’s general partner CEO Jim Teague said: “We are very pleased to work with Enbridge to jointly develop a deepwater port in the Gulf of Mexico to support growing exports of US crude oil.
“We value Enbridge’s expertise and resources as we focus our collective commercial development efforts on making the SPOT project a reality.”
The construction work of SPOT is subject to receipt of regulatory approvals and licences from the federal Maritime Administration, which is currently evaluating the SPOT application.
Enterprise Products Partners offers natural gas and gathering, treating, processing, transportation and storage services.