Enterprise gets MARAD license for 2-million b/d offshore crude terminal

April 10, 2024
Enterprise Products Partners received the deepwater port license for its 2-millon b/d offshore Sea Port Oil Terminal from the US Maritime Administration.

Enterprise Products Partners LP (EPP) has received the deepwater port license for its 2-millon b/d offshore Sea Port Oil Terminal (SPOT) from the United States Maritime Administration (MARAD). Enterprise originally applied for the license in 2019 and received a MARAD record of decision for the project 3 years later (OGJ Online, Nov. 30, 2022).

SPOT will be about 30 nautical miles off the Brazoria County, Tex., coast in 115 ft of water. It will load VLCCs and other crude oil tankers up to a rate of 85,000 bbl/hr.

The project will also include construction of dual 36-in. OD, bidirectional pipelines connecting it to EPP’s planned 4.8-million bbl Oyster Creek crude oil terminal, about 10 miles inland in Brazoria County. Oyster Creek would also be directly connected to the Enterprise Crude Houston (ECHO) terminal, which has more than 8 million bbl of  storage capacity.

“With US exports of crude oil at 4 million b/d, SPOT offers a more environmentally friendly, safe, efficient and cost-effective way to deliver crude oil to global markets,” said A.J. “Jim” Teague, co-chief executive officer of Enterprise’s general partner. With the direct connection to ECHO terminal, as well as EPP’s integrated midstream network, the company says SPOT would offer access to more than 40 distinct grades of crude oil, including Midland WTI, while also reducing emissions.

“Compared with the current industry practice of reverse lightering, SPOT is expected to reduce crude vapor emissions by 95%, and lower total greenhouse gases by 65%,” said Teague. “Considering that as many as eight smaller vessels are required during the reverse lightering process, SPOT offers a safer alternative and reduces the potential for accidents and spills. At full capacity, SPOT would eliminate more than 900 ship-to-ship transfers in federal waters annually.”

A US federal appeals court last week said Enterprise could move forward with project, denying a petition by environmental groups to review MARAD’s approval (OGJ Online, Apr. 5, 2024).