With U.S. crude increasingly leaving American shores in large supertankers, private equity-backed Sentinel Midstream LLC wants in on the action, bringing its new port online deep water by 2026.
The tight-knit company’s proposed Texas oil terminal that will handle the world’s largest ships expects to receive all permits in the first quarter of next year, with construction to follow, Sentinel CEO Jeff Ballard. Called Texas GulfLink, the port aims to load up to 1 million barrels of oil a day, helping to usher in the massive growth in US crude exports expected by the end of the decade.
Crude shipments from the U.S. Gulf, the nation’s main export hub, will expand by about 2 million barrels a day to about 5.5 million by 2030, Ballard said in an interview. The so-called very large crude carriers, or VLCCs, that will use the dock can carry 2 million barrels of oil.
Historically, the US has only used VLCCs for longer routes, such as between the Gulf Coast and Asia, with shipments to Europe moving on smaller vessels carrying up to 1 million barrels. However, large ships are increasingly popular on even shorter routes, particularly as the war in Russia disrupts energy flows and forces buyers to seek alternative suppliers.
Sentinel’s project, backed by Cresta Fund Management, is one of four proposed ports looking to tap into a growing and lucrative export market for US crude.
