The Port of Houston is witnessing a surge in energy facility infrastructure on the Gulf Coast.
Dallas-based pipeline operator Sentinel Midstream LLC received approval in February from the U.S. Maritime Administration (MARAD) to move forward with the Texas Gulflink terminal, its deep-water port off the coast of Brazoria County, south of Houston.
The port license will allow for a crude oil export terminal catering to very large crude carriers, commonly called VLCCs. Crude oil will be received onshore and then transported to the Texas Gulflink terminal.
This supplements MARAD’s decision last April concerning Enterprise Products Partners’ terminal called the Sea Port Oil Terminal, slated to be built 30 miles off the coast of Brazoria County. Both terminals expect to be able to load VLCCs at a rate of about 85,000 barrels per hour.
The Gulflink and Sea Port Oil Terminals will allow VLCCs to load up in the Gulf, thus reducing the number of smaller ships sent into shipping channels to load large vessels. This will improve traffic in crowded Gulf Coast ship channels and will reduce both costs and emissions from lightering operations.
Connection from inland fossil fuel sources to the Gulf Coast will be improved due to a 50-50 venture between Oklahoma-based energy infrastructure company Oneok Inc. and MPLX.
MLPX is Marathon Petroleum’s master limited partnership that focuses on natural gas pipeline transportation.
The joint venture will construct a new Texas City export terminal and connecting pipeline called Texas City Logistics LLC on Galveston Bay, southeast of Houston, primarily for low ethane propane and normal butane. Oneok and MPLX will each invest about $700 million for the export terminal.
Separately, MPLX is building two 150,000-bpd fractionation facilities adjacent to Marathon Petroleum’s Galveston Bay Refinery in Texas City, the Houston area’s largest refinery. These are expected to be in service in 2028 and 2029 respectively.
Other fuel facilities are moving forward as well, part of the state’s initiative to be at the forefront of the nation’s energy innovation.
In late January, Texas Gov. Greg Abbott announced the $1.6 billion sustainable aviation fuels project on the Houston Ship Channel, planned by Summit Next Gen LLC, has qualified for the state’s new school tax abatements. The company calls this the “largest ethanol-to-jet fuel production facility announced to date in North America.”
Under the new Texas Jobs, Energy, Technology, and Innovation program launched at the beginning of 2024, incentives can be used for a large variety of manufacturing and infrastructure projects with high employment potential. Renewable energy projects do not qualify due to low job creation.
Summit Next Gen has advanced into the final phase of engineering and project design for the facility with engineering, procurement and construction partner Burns & McDonnell, on a 60-acre site with an option to purchase another 40 contiguous acres. The final investment decision is expected in mid-2025, with operations to begin in 2027.
Meanwhile, the Port of Houston Authority has been awarded nearly $25 million in grants from the Department of Transportation and the Federal Highway Administration to develop a hydrogen fueling station for heavy-duty trucks in the Bayport area.
The project will likely support Houston’s HyVelocity Hydrogen Hub, a regional hydrogen ecosystem spearheaded by GTI Energy and the Center for Houston’s Future, currently in the early stages of planning and design. To date, the Hub has earned up to $1.2 billion in federal funding.
Last year, the port’s grants team secured nearly $57 million in grant funding, further supporting the port’s sustainability plan to lead, partner and produce tangible results.
“This project exemplifies Port Houston ‘walking the talk’ of sustainability and net-zero,” said Port Houston chief infrastructure officer Rich Byrnes. “Port Houston’s sustainability roadmap and grants strategy is about accelerating and de-risking business decisions supporting decarbonization and energy transition.”
“Texas is where the future of America is building,” said Gov. Abbott. “Working together, we will continue to lead the nation in energy innovation and build an even stronger and more prosperous Texas than ever before.”
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