Under the non-binding heads of agreement (HoA), Energy Transfer will supply four million barrels per month from the Blue Marlin Offshore Port.
The HoA, however, is subject to the signing of definitive agreements between the parties and the satisfaction of other conditions, including the final investment decision by Energy Transfer on the project.
In a press statement, Energy Transfer said: “The agreement with TotalEnergies marks an important step in the commercialisation of the proposed Blue Marlin Offshore Port and underscores the need for the further development of export capabilities to support the efficient delivery of US-produced energy products globally.”
In late 2020, Energy Transfer submitted an application seeking approval for the project, which involves the conversion of an existing offshore platform to enable loading of large crude tankers with up to two million barrels of oil piped from Texas.
The port aims to provide reliable long-term crude oil transportation and loading services for US oil for export to the global market.
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Energy Transfer expects the project to receive a licence from the US Maritime Administration in Q2 2024.
Earlier in 2023, TotalEnergies and its partners made the final investment decision to develop the first phase of the Rio Grande natural gas liquefaction project in South Texas, US.
TotalEnergies is partnering with Global Infrastructure Partners, NextDecade, GIC and Mubadala on the project.