Infrastructure deep dive: Gulf Coast offshore terminals in a race to the finish line

The flood of light sweet crude flowing into the US Gulf Coast from the lower 48 has driven the need for additional coastal export capacity. With inland coastal waters too shallow for Very Large Crude Carriers, offshore terminals in deep water have emerged as a logistical solution to maintain unfettered global access. Seven proposed projects have stepped up to the plate to answer the market’s call; however, the potential for overbuild threatens to inundate the market with a glut of export capacity. As a result, we estimate that only two to three projects will receive the go ahead to commence construction, making the competition a close race to the finish line. In this Insight, we will: -evaluate the different proposed offshore terminals project logistics, -assess their stage in the development process, -analyse the projects’ required capital, -and return focused tariff rates