Kinder Morgan Sells Stake in Offshore Crude Oil Export Terminal

OILMONSTER.COM- Houston pipeline operator Kinder Morgan has sold its stake in a proposed offshore crude oil export terminal in the Gulf of Mexico known as Texas COLT, the company confirmed.

Financial terms of the deal were not disclosed, but Kinder Morgan confirmed in a Monday afternoon statement that the company sold its stake to Enbridge, the lead developer in the project.

"Given the ongoing commitment required to move this project forward through the regulatory phase and, after an internal review within Kinder Morgan, it was determined that continuing with the project does not align with our strategic priorities," the company said in a statement.

Proposed to be built in an area of the Gulf of Mexico about 40 miles south of Freeport, Texas COLT was launched as a joint venture of Enbridge, Kinder Morgan and German marine terminal operator Oiltanking to accommodate Very Large Crude Carriers, or VLCCs.

Capable of carrying 2 million barrels of crude oil in a single load, VLCCs are emerging as the tanker of choice for exports, but U.S. ports are too shallow to handle them. A fully loaded VLCC tanker requires 66 feet of water, while ship channels in Texas and elsewhere are typically between 40 to 45 feet deep prompting the need for offshore terminals.

"Texas COLT is a more strategic and desirable project for Enbridge," Kinder Morgan said in its statement. "The project aligns with Enbridge's existing footprint in the U.S. Gulf Coast region and their stated interest in growing their position in the region."

Proposed to be built in an area of the Gulf of Mexico about 40 miles south of Freeport, Texas COLT was launched as a joint venture of Enbridge, Kinder Morgan and German marine terminal operator Oiltanking to accommodate Very Large Crude Carriers, or VLCCs.

Capable of carrying 2 million barrels of crude oil in a single load, VLCCs are emerging as the tanker of choice for exports, but U.S. ports are too shallow to handle them. A fully loaded VLCC tanker requires 66 feet of water, while ship channels in Texas and elsewhere are typically between 40 to 45 feet deep prompting the need for offshore terminals.

"Texas COLT is a more strategic and desirable project for Enbridge," Kinder Morgan said in its statement. "The project aligns with Enbridge's existing footprint in the U.S. Gulf Coast region and their stated interest in growing their position in the region."

 Courtesy: www.chron.com