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Sentinel Midstream has moved ahead with construction of its Texas GulfLink deepwater oil export project off the Texas coast, marking a rare large-scale development in recent years. The project, backed by funding under the US-Japan trade agreement, is expected to begin operations by late 2028. The development comes as demand for US crude rises in Asia due to supply disruptions in the Middle East. Once operational, the facility will be capable of fully loading supertankers, addressing a key infrastructure gap and supporting the expansion of US oil exports globally.
Sentinel Midstream has announced that it has begun construction of its deepwater oil export project off the Texas coast, marking one of the first major developments of its kind in the United States in recent years. Advertisement
The company stated that commercial operations at the Texas GulfLink system are expected to begin by the fourth quarter of 2028. A senior company official indicated that excavation work will begin soon, along with procurement of equipment that typically requires longer delivery timelines.
The project is being developed at a time when the United States has emerged as a net exporter of crude oil for the first time since World War Two. This shift has been supported by rising demand from Europe and Asia, particularly due to disruptions in Middle Eastern oil supplies following the Iran conflict. Asian buyers, in particular, have increasingly turned to US crude to meet their requirements.
The US administration had earlier committed to speeding up approvals for energy infrastructure projects to strengthen the oil and gas sector and increase production capacity. In line with this, the Texas GulfLink project received a key license in the past few months, marking an important step in its regulatory process. At the same time, it was indicated that Japan would invest in the USD 2.1 billion facility under a bilateral trade agreement.
Sentinel Midstream will lead the development of the project, including construction, operations, and long-term management. The company noted that the financial backing reflects continued global confidence in US energy infrastructure and supports the country’s efforts to expand crude oil exports.
The offshore terminal will be located around 30 miles from Freeport, Texas. It is designed to load supertankers with up to 2 million barrels of oil in a single day, which is expected to significantly improve export efficiency.
At present, only one US facility, the Louisiana Offshore Oil Port, has the capability to fully load supertankers. Other ports rely on smaller vessels to transfer crude to larger ships, increasing both time and cost. The addition of another deepwater port is expected to address this bottleneck.
A similar project proposed earlier by Enterprise Products Partners, known as the Sea Port Oil Terminal, did not move forward due to limited customer interest. The company had attributed this to regulatory delays and changes in global oil trade patterns following Russia’s invasion of Ukraine, which shifted US exports more towards Europe rather than Asia.
However, recent developments in the Middle East have once again altered global oil flows. Supply constraints in the region have led Asian buyers to increase imports from the United States. Oil exports from the US to Asia reached a record 2.31 million barrels per day in the past month, surpassing shipments to Europe.
Source Reuters
5th Jun, 2025
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