Sentinel Midstream Eyes Final Investment Decision for US Oil Export Project

Sentinel Midstream, a Dallas-based provider of crude oil midstream solutions, has received a significant boost for its Texas GulfLink deepwater crude oil export terminal project. The company announced on February 18 that it had received its Record of Decision (ROD) from the U.S. Department of Transportation's Maritime Administration, approving its deepwater port license application. This crucial federal approval paves the way for Sentinel to move forward with its plans to construct and operate the offshore crude oil export terminal, which is expected to have a substantial impact on the U.S. crude oil export market.

The Texas GulfLink project, located approximately 30 miles off the coast of Brazoria County, Texas, is designed to cater to Very Large Crude Carriers (VLCCs), setting a new standard for crude loading efficiency. The terminal is expected to substantially reduce costs, improve vessel traffic in crowded U.S. Gulf Coast ship channels, and reduce air emissions associated with lightering operations. Additionally, the project will employ state-of-the-art vapor recovery technology, further improving its environmental profile.

Sentinel Midstream's President and CEO, Jeff Ballard, expressed his enthusiasm about the permitting milestone, stating that the team's hard work, perseverance, and expertise had led to this great result for the company. He also thanked ABADIE LLC, Miller Strategies, and Kean Miller LLP for their help in achieving this success.

The Record of Decision (ROD) concludes a multi-year environmental and technical review of Texas GulfLink's application, during which multiple draft environmental impact statements were published and several public hearings held. The ROD considers the comments of multiple federal and state agencies and thousands more received from the public throughout the review period. This approval indicates that the project has successfully addressed regulatory concerns and is well-positioned to move forward.

Sentinel Midstream will now turn its attention to satisfying the license conditions and working with the U.S. Maritime Administration, the U.S. Coast Guard, and the Trump Administration to bring the project to fruition. The approval is well-timed to capitalize on President Trump's stated goal of unleashing the full power of America's domestic energy supply, which could lead to increased crude oil exports and higher returns for investors.

Sentinel Midstream is also actively engaged with customers and key stakeholders to promote integrated market solutions. As the only independent deepwater export terminal project, Texas GulfLink is uniquely positioned amongst its industry peers, offering shippers tailored commercial solutions with competitive market rates and terms. This flexibility could further enhance the project's potential returns for investors.

In conclusion, Sentinel Midstream's receipt of the Record of Decision (ROD) for its Texas GulfLink deepwater crude oil export terminal project is a significant milestone that brings the company one step closer to making a final investment decision. The project's potential to substantially reduce costs, improve vessel traffic, and reduce air emissions, combined with its unique position in the market, could lead to significant returns for investors. As the project moves forward, investors will be watching closely to see if Sentinel Midstream can successfully navigate the remaining challenges and bring the Texas GulfLink project to fruition.