TotalEnergies Signs Offtake Deal for Oil from Energy Transfer

TotalEnergies SE has signed up for the supply of four million barrels of oil per month from a pending project of Energy Transfer LP in the United States Gulf of Mexico.
Energy Transfer has yet to make a final investment decision on the Blue Marlin Offshore Port project, a deepwater port in federal waters with linked offshore and onshore facilities that has been awaiting government clearance since 2020.
Both building new infrastructure and utilizing existing ones, Blue Marlin is designed to provide crude transportation and loading services for output from the continental US. It plans to load up to one VLCC (very large crude carrier) a day with a daily capacity of 1.92 million barrels, for delivery to buyers abroad.
“The agreement with TotalEnergies marks an important step in the commercialization of the proposed Blue Marlin Offshore Port and underscores the need for the further development of export capabilities to support the efficient delivery of U.S.-produced energy products globally”, Energy Transfer said in a recent press release.
The project has yet to be cleared by the Transportation Department’s Maritime Administration, where it is on hold pending the receipt of further environmental and technical information. The application was filed October 1, 2020.
Stock analysts at The Motley Fool said in a note about the deal with TotalEnergies several proposed VLCC-specific offshore ports have faced delays over environmental concerns, as well as lower oil prices.
Energy Transfer’s use of existing infrastructure is a strategy to avoid such delays, which “would result in a lower environmental impact and a faster project completion time frame”, they wrote last week.
Energy Transfer has also utilized existing infrastructure for its project converting the Lake Charles, Louisiana liquefied natural gas import facility into an export one. The Lake Charles project has already hurdled the government permitting process.
Located offshore Cameron Parish, Louisiana, Blue Marlin includes a new petroleum pipeline about 37 miles long and consisting of 42-inch-diameter pipes to connect the existing Nederland Terminal in Jefferson County to the existing Stingray Pipeline in Cameron Parish.
Blue Marlin plans to convert two natural gas platforms, two above-ground natural gas stations and the Stingray natural gas pipeline into oil service—in the process reducing emissions by utilizing existing infrastructure according to Energy Transfer.
Owner Energy Transfer, a limited partnership trading on the New York Stock Exchange, is an oil and gas logistics operator across the US, counting among its portfolio over 125,000 miles of pipeline and connected infrastructure spanning 44 states.

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