AMERICAS: POTEN HIGHLIGHTS UPSWING IN US GULF VLCC EXPORT TERMINAL PROJECTS

15 August 2018: “In its weekly Tanker Opinion, Poten & Partners focuses on the increasing use of very large crude carriers (VLCCs) for US crude transportation to export markets, notably Asia. However, it notes that almost all VLCCs in the US Gulf require loading by reverse lightering, using Aframaxes to shuttle from onshore terminals to VLCCs waiting offshore.

Tapping into this trend, a number of midstream, logistics and trading companies have announced plans for VLCC-capable offshore export terminals. Poten points to projects that have been announced in the US Gulf coast area, from Brownsville in south-west Texas to LOOP in eastern Louisiana. Companies who have flagged up terminal projects include Jupiter MLP,

Poten notes that: ‘There is a risk that the new export capacity will outpace production growth, but, given their pipeline connections and superior economics, it is likely that these new offshore terminals will be fully utilised.’”

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