In the race to build the next deepwater crude oil export terminal in the Gulf of Mexico, Sentinel Midstream’s proposed Texas GulfLink (TGL) has become one of the frontrunners. TGL’s plan gained its crucial Record of Decision (ROD) Approval from the U.S. Department of Transportation’s Maritime Administration (MARAD) on February 14, but there is still some distance to go before a final investment decision (FID) is reached. In today’s RBN blog we’ll discuss Sentinel’s TGL plan, why it might be uniquely positioned to move forward, and the other contenders still in play.
Canadian crude output is rising, requiring new export routes. As traditional pathways face constraints, the U.S. Rockies—especially the Guernsey, WY hub—are emerging as key corridors for moving Canadian heavy crude to downstream markets, including the Gulf Coast.
Let’s start with a refresher on the TGL project and efforts to build a deepwater export terminal in the Gulf of Mexico*. TGL, which at one point was considered a Dark Horse in the multi-year competition, would feature a deepwater platform (orange-and-white striped square in Figure 1 below) able to load a tanker at a rate of 85 Mb/hour, 2 MMb/d, which would allow it to fully load a Very Large Crude Carrier (VLCC) in one day. The platform, located nearly 30 miles offshore Freeport, TX, would be connected via the 42-inch-diameter Texas GulfLink Pipeline (dashed orange line) to an onshore storage terminal at Jones Creek (aqua-and-white-striped tank icon west of Freeport) in Brazoria County. At the onshore facility, about 9 MMbbl of above-ground tanks would be supplied from the Houston area, including the Webster Terminal (pastel-yellow tank icon), giving the project access to significant volumes of Permian originated crude oil, in addition to other grades feeding that market.
Figure 1. Sentinel’s Proposed Texas GulfLink Project and Other Nearby Infrastructure. Source: RBN
We’ve written a great deal in the RBN blogosphere about the fierce, multi-year competition to build a deepwater terminal (see Gulf Coast Time). U.S. crude export volumes took off in the 2010s and were expected to continue growing along with production throughout the 2020s, driving the market to seek the most efficient export options. Prior to 2018, numerous terminals were proposed along the Gulf Coast including a number of offshore single-point mooring (SPM) facilities that would be able to fully load a VLCC without reverse lightering. However, in the downturn of 2020, some of those projects were scrapped, leaving four developmental projects and the one in-service offshore facility in Louisiana.
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About the song
"The Distance" is a song by American alternative rock band Cake. Released in August 1996, "The Distance" was the first single from the band's second album, Fashion Nugget, and is considered one of their most popular songs. It was written by the band's guitarist at the time, Greg Brown.
Cake was formed in August of 1991, in Sacramento, California by John McCrea (singer), Vince DiFiore (trumpet), Greg Brown (guitar), Frank French (drums), and Shon Meckfessel (bass) who soon left and was replaced by Gabe Nelson. Following the self-release of its debut album, Motorcade of Generosity, the band was signed to Capricorn Records in 1995 and released its first single, "Rock 'n' Roll Lifestyle", which hit number 35 on the Modern Rock Tracks music chart and was featured on MTV's 120 Minutes; French and Nelson then left the band, and were replaced by Todd Roper and Victor Damiani. Cake's second album, 1996's Fashion Nugget, went platinum on the strength of its lead single, "The Distance". Following a tour of Europe and the United States, both Brown and Damiani announced they were leaving Cake, which led to speculation about the band's future; McCrea eventually recruited Xan McCurdy to take over on guitar, and persuaded Nelson to return.
Prolonging the Magic, the band's third album, was released in 1998 and went platinum, having shipped over one million units; this was followed three years later by Comfort Eagle, the band's first album on Columbia Records, featuring the single "Short Skirt/Long Jacket" which hit number 7 on the Modern Rock Tracks chart. Following a series of tours, including several versions of the Unlimited Sunshine Tour, the band released Pressure Chief in 2004, its second and last album on Columbia. After creating its own label, Upbeat Records, the band released Showroom of Compassion in 2011, which became its first album to debut at the top of the Billboard charts, selling 44,000 copies in the first week after release. Their studio output has been minimal since 2011, although they have continued to tour and have occasionally hinted at an upcoming album.
