HOUSTON — An oil terminal and pipeline network expected to be built off the Texas Gulf Coast and open in about two years would be capable of handling nearly 20 percent of the nation’s daily imported oil.
Demand from expanding refineries along the coast, from Freeport to Port Arthur, is driving the $1.8 billion project, executives of the joint partnership said Monday. It will be the second offshore port in the Gulf of Mexico.
The Texas Offshore Port System is a joint venture of Enterprise Products Partners LP and Teppco Partners LP, both based in Houston, and Oiltanking Holding Americas Inc., a subsidiary of Germany’s privately held Marquard & Bahls AG.
The terminal will allow huge oceanic tankers to unload crude about 36 miles off the coast of Freeport, avoiding sometimes fog-shrouded coastal areas and other hazards.
Two floating buoys at the terminal will be connected to a pumping facility anchored in 115 feet of water, which will move the oil to shore via an undersea pipeline. Once ashore, another pipeline network will carry the oil to storage tanks and refineries. Altogether, the pipeline network is expected to be 160 miles.
In a conference call Monday, Enterprise president and chief executive Mike Creel said TOPS is needed to provide for ongoing refinery expansion along the Texas Gulf Coast.
Exxon Mobil Corp. and Motiva Enterprises LLC have made long-term commitments for shipments from TOPS to their coastal refineries, a big lift for the project, Creel said.
