HOUSTON—Kinder Morgan Inc. (NYSE: KMI) has dropped out of a recently proposed U.S. Gulf Coast deepwater crude export venture, the project’s leader Enbridge Inc. (NYSE: ENB) said on March 25.
The $800 million project, known as Texas COLT, is one of eight similar projects proposing facilities that would move U.S. shale to overseas markets by loading supertankers able to carry up to 2 million barrels apiece.
Pipeline operators Enbridge and Kinder Morgan disclosed plans to build an crude export terminal off Freeport, Texas, in January, and filed permit applications with the U.S. Maritime Administration. German oil storage firm Oiltanking Partners remains committed to the project, said Enbridge.
“The project does not align with our strategic priorities,” Kinder Morgan spokeswoman Lexey Long said. The company cited the time commitment to move the project through a regulatory phase and a recent internal review.
Enbridge said it will buy out Kinder Morgan’s stake in the project, and expects the facility would still be well-positioned to “provide the supply diversity” that is attractive to overseas U.S. crude buyers, spokesman Michael Barnes said.
“Enbridge has interests in Gray Oak, Seaway and ETCO pipelines serving Houston crude markets,” Barnes said.
Kinder Morgan’s involvement in the joint venture provided access to the 300,000 barrel-per-day Kinder Morgan Crude and Condensate pipeline that runs from the Eagle Ford shale in South Texas to the Gulf Coast.
The proposed COLT project would load 23 supertankers per month at a rate of 85,000 barrels per hour. The vessels would be moored at an offshore platform almost 30 miles off Texas, in 110 feet of water, with oil supplied through a 42-inch pipeline, Enbridge said in regulatory documents.
Recommended Reading
US Drillers Cut Oil, Gas Rigs for Second Week in a Row
2024-08-23 - The oil and gas rig count fell by one to 585 in the week to Aug. 23. Baker Hughes said that puts the total rig count down 47, or 7% below this time last year.
FourPhase Secures Three New Contracts in UK and UK Continental Shelf
2024-08-22 - The contracts include coiled tubing and de-sanding services for operators in the U.K. Continental Shelf.
Hess Seeks Partnership for Suriname Block 59
2024-08-22 - Hess Corp. is seeking a new partner or partners to join in Suriname’s offshore Block 59 after Exxon Mobil and Equinor each gave up their one-third interests last month.
How Liberty Rolls: Making Electricity, Using NatGas to Fuel the Oilfield
2024-08-22 - Liberty Energy CEO Chris Wright said the company is investing in keeping its frac fleet steady as most competitors weather a downturn in oil and gas activity.
OPEC Gets Updated Plans From Iraq, Kazakhstan on Overproduction Compensation
2024-08-22 - OPEC and other producers including Russia, known as OPEC+, have implemented a series of output cuts since late 2022 to support the market.