NEWSLETTER
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environmental groups sued the US government on Thursday to revoke his approval of Enterprise Products Partners’ (New York Stock Exchange:EPD) proposed a deepwater oil export facility off the Texas Gulf Coast, saying it was a contamination threat.
The US Maritime Administration, part of the Department of Transportation, failed to adequately assess the risk of oil spills and damage to species when approved the export terminal in Novemberenvironmental groups said.
The agency had determined that construction of the Seaport Oil Terminal would reduce the amount of ship-to-ship transfers of crude oil and decrease emissions from conventional crude oil loading facilities.
Chevron (CVX) signed a long-term agreement with Enterprise Products (EPD), saying that SPOT provides an opportunity to significantly expand export capacity as the company increases its oil production in the Permian Basin.
The seaport oil terminal would be the largest offshore export terminal in the US, with the capacity to load two supertankers at once and export 2 million barrels per day of crude oil.
Enterprise Product Partners (EPD) offers “very bright earnings prospects” in the long and short term, but the market heavily discounts its valuation, Envision Research writes in a recently published analysis in Seeking Alpha.
