Kinder Morgan has decided to drop out of a joint venture project to construct a U.S. Gulf Coast crude export terminal off the coast of Freeport, Texas.
TexasCOLT is a $800 million terminal project was originally a joint venture between Enbridge, Kinder Morgan and Oiltanking.
Kinder Morgan spokesperson Lexey Long told Reuters: “The project does not align with our strategic priorities.”
Enbridge has reportedly said it will buy out Kinder Morgan’s stake in the project. Kinder Morgan’s involvement in the joint venture provided access to Kinder Morgan Crude and Condensate pipeline that runs from the Eagle Ford shale in South Texas to the Gulf Coast.
The company took the decision to quit the project following an internal review and given the time commitment to move the project through a regulatory phase.
The project, with an expected in-service date of 2022, includes an offshore platform and two offshore loading single point mooring buoys capable of fully loading a 2 million-bbl very large crude carrier in about 24 hr. The offshore facilities will be connected via a 42-in. pipeline to an onshore tank farm that will have as much as 15 million bbl of storage capacity.
For more information visit www.enbridge.com