Chevron to Help Enterprise Develop VLCC Export Terminal off Texas

TankerIllustration; Source: Pixabay under CC0 Creative Commons license

Enterprise Products Partners has signed long-term contracts with Chevron related to the development of its Sea Port Oil Terminal (SPOT) in the Gulf of Mexico.

The agreements with a Chevron subsidiary support Enterprise’s final investment decision for SPOT, which consists of onshore and offshore facilities, including a fixed platform located around 30 nautical miles off the Brazoria County, Texas coast in 115 feet of water.

Construction of SPOT is subject to obtaining the required approvals and licenses from the federal Maritime Administration, which is currently reviewing the SPOT application.

“We are very pleased to announce these agreements with Chevron,” said A.J. Teague, Chief Executive Officer of Enterprise’s general partner.

“As a result, we are announcing our final investment decision for our offshore crude oil terminal, subject to government approvals.”

The terminal is designed to load very large crude carriers (VLCCs) at rates of 85,000 barrels per hour, or up to 2 million barrels per day. Enterprise explained that the facility also meets or exceeds federal requirements and, unlike existing and other proposed offshore terminals, “is designed with a vapor control system to minimize emissions”.

“The SPOT facility provides opportunity to significantly expand our export capacity and access multiple market centers as we increase our crude oil produced out of the Permian,” George Wall, President of Chevron Supply and Trading, a division of Chevron U.S.A., said.

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