Sentinel Secures Commitments for Offshore Crude Terminal

Wednesday, June 5, 2019

Sentinel Midstream LLC has secured shipper commitments needed to move forward on a proposed $1 billion crude export terminal off the Texas coast, the company's chief executive said on Wednesday.

The firm's Texas GulfLink project is one of eight proposed U.S. deepwater export projects seeking to load supertankers that carry up to 2 million barrels of crude. Sentinel last week became the fifth to apply for federal permits.

Sentinel's offshore facility could begin operations in early 2020 and load up to 2 million bpd from single-point mooring buoys in deepwaters 30 miles off Freeport, Texas, said CEO Jeff Ballard.

It recently acquired shipper commitments that "justify spending the capital to take on this project," he said. Ballard declined to disclose the shippers.

Sentinel is backed by Cresta Fund Management, a Dallas-based private equity company.

U.S. Maritime Administration approval for the project could be received in little less than a year, and construction could take up to 24 months, Ballard said.

The project includes constructing a 42-inch pipeline and up to 15 million barrels of onshore oil storage.

Some executives, traders and analysts said they believe not all of the eight proposed terminal projects - which would have a combined export capacity roughly equal to current U.S. oil output - will get built.

But overseas buyers have expressed "lots of interest" in shipping U.S. crude on fully loaded supertankers, and demand is strong enough to support at least two export facilities, Ballard said.

Reporting by Collin Eaton

Categories: Offshore Tankers Finance

Related Stories

One Shelf Drilling Rig Up for New Job in India, Other for Disposal

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Japanese Oil and Gas Firm Enters Two Blocks off Malaysia

MODEC and Terra Drone Renew FPSO Drone Inspection Partnership

Wood JV Gets EPC Job for Shell off Brunei

Chuditch Gas Field Drilling Ops Get Delayed to Next Year

ABS Greenlights SHI’s Multi-Purpose Deepwater LNG Floating Unit

Current News

One Shelf Drilling Rig Up for New Job in India, Other for Disposal

Four Jack-Up Drilling Rig Deals Set to Bring In $129M for Borr Drilling

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com