finance
U.S. and Japan Commit $2.1 Billion to Finance Texas GulfLink Deepwater Oil Export Terminal
The Japan-U.S. strategic investment agreement will cover the full originally announced cost of the Texas GulfLink project, which has been in development for nearly a decade. Construction is expected to begin imminently on the terminal 30 miles offshore, connected by pipeline from Jones Creek, Texas.
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U.S. 1 billion to Sentinel Midstream’s Texas GulfLink project, matching the terminal’s originally announced cost.
U.S. Petroleum exports climb to record highs amid the Iran war, with developers otherwise reluctant to commit capital without long-term contracts. A long line of VLCCs began trekking to the Texas Gulf Coast in April due to supply shortages from the Middle East. Each VLCC can hold 2 million barrels of oil but can only partially fill at Texas ports because of shallower depths.
They must be topped off in the Gulf of Mexico via smaller tankers, a slower, costlier and environmentally riskier process. ” Sentinel is a private Dallas company backed by Cresta Fund Management. Its chief executive, Jeff Ballard, stated that the deal is not a direct government acquisition.
Keland Rumsey, crude team lead analyst for East Daley Analytics, believes the Iran war is helping the joint governments expedite the Texas GulfLink project. The terminal will not be completed until late 2028. “I do think there’s going to be a shifting of how people view the Middle East as far as a reliable source of energy,” Rumsey said.
Construction on Texas GulfLink is expected to begin imminently. The terminal will be built about 30 miles offshore of the Texas coast. The hub will be moored in place and connected onshore via a long oil pipeline originating in tiny Jones Creek, Texas—nearly 60 miles south of Houston.
The effort to build a deepwater oil-exporting hub in the Gulf is a nearly decade-long effort. It was originally a race among top pipeline developers that stalled during the pandemic when demand plunged and the Port of Corpus Christi expanded its dominance. For years Sentinel’s project was viewed as an overlooked dark horse.
