Green Light for $3 Billion Oil Port off Texas Expected By Year-end

Enterprise Products Partners on Tuesday said it expects to have two contracts for its proposed deepwater oil export terminal by May 31 and reach a final investment decision before year-end.

Enterprise's ambitious Sea Port Oil Terminal (SPOT), proposed off for a site off the coast of Texas, would be able to load two supertankers at a single time. It received a key government license this month, but is yet to sign any commercial customers.

The cost of the project has soared to about $3 billion, Reuters reported this month, citing industry experts.

Commercialization of the project is continuing, Co-Chief Executive Officer Jim Teague said on call to disussion first quarter earnings.

He declined to provide the cost of building SPOT, but said the $3 billion capital estimate for SPOT was high.

Enterprise expects organic growth capital investments to range between $3.25 billion and $3.75 billion in 2024 and 2025.

The company will not move forward with the SPOT project until it has contracts to support it, Chief Commercial Officer Brent Secrest said on the call.

The company transported about 2.38 million barrels per day (bpd) of crude oil on its pipelines in the three months ended March 31, about 3.5% higher than a year earlier.

Total crude oil marine terminal volumes were a record 1.1 million (bpd) in the quarter, a 30% increase compared to the same quarter last year.

Net income rose by 4.3% to $1.48 billion in the first quarter. Adjusted earnings of 66 cents, missed analysts expectations by 1 cent.

Shares of the company were down 1.4% at $28.18 in morning trade.

(Reuters - Reporting by Arathy Somasekhar)