Enterprise Products Partners receives key license for offshore oil terminal in US

Enterprise Products Partners L.P. (NYSE: EPD), a leading North American provider of midstream energy services, announced a major advancement in its project to enhance U.S. crude oil export capabilities. The company has been granted a deepwater port license by the United States Maritime Administration (MARAD), a critical step forward for the Sea Port Oil Terminal (SPOT) project. This license marks a pivotal achievement in the project’s development, allowing Enterprise to proceed with the construction of an offshore terminal capable of handling 2 million barrels per day (BPD) of crude oil.

The journey to this milestone began in January 2019, when Enterprise first submitted its application for the deepwater port license. Over the past five years, the company has engaged in comprehensive discussions with federal, state, and local authorities, contributing to an extensive environmental review process. This effort included public meetings and environmental impact studies, meticulously documented across more than 30,000 pages, to ensure stakeholders had ample opportunity to understand and contribute to the project’s development.

Planned to be situated approximately 30 nautical miles off the Brazoria County, Texas coast, the SPOT offshore platform is designed with state-of-the-art facilities. This includes the capacity to load Very Large Crude Carriers (VLCCs) and other tankers at rates up to 85,000 barrels per hour, through a system connected directly to Enterprise’s extensive midstream network. This strategic infrastructure is set to significantly enhance the efficiency and environmental safety of U.S. crude oil exports.

Enterprise Products Partners L.P. receives a crucial license for the SPOT project, aiming to improve U.S. crude oil exports

The SPOT project is highlighted by its potential to drastically reduce operational risks and emissions associated with traditional oil transfer processes, such as reverse lightering. According to A.J. “Jim” Teague, co-chief executive officer of Enterprise’s general partner, SPOT is expected to cut crude vapor emissions by 95% and lower total greenhouse gases by 65%. Moreover, the platform’s design and operations aim to mitigate the risks of oil spills and accidents, enhancing safety for marine traffic and ecosystems alike.

The project underwent a rigorous four-year environmental review led by MARAD and the U.S. Coast Guard, with input from over a dozen federal agencies including the Environmental Protection Agency and the Army Corps of Engineers. The findings underscore the project’s alignment with national interests, citing benefits such as employment, economic growth, and U.S. energy infrastructure resilience. The adoption of the best available technology and safety measures further emphasizes SPOT’s role in providing a more efficient and environmentally responsible crude oil transport facility.

The development of SPOT represents a significant leap forward for U.S. energy exports, promising to make them more efficient, safer, and less environmentally impactful. By facilitating direct access to international markets for U.S. crude oil, Enterprise Products Partners is not only enhancing its own operational capabilities but also contributing to the global energy landscape’s resilience and security.