July 29, 2026

Sentinel Midstream begins Texas GulfLink construction

By:
Dallas Bond

Sentinel Midstream has begun building the Texas GulfLink deep-water crude oil export terminal, a multibillion-dollar offshore facility planned about 30 miles off the coast of Brazoria County, west of Freeport in the Gulf of Mexico.

The project is designed to load Very Large Crude Carriers (VLCCs) directly offshore and is expected to begin operations in 2028. According to the U.S. Transportation Department, it will support up to 720 construction and operation jobs.

Offshore export hub

Sentinel Midstream, based in Dallas, is developing the terminal as U.S. oil exports reach record levels, according to the article. Initial plans moved forward in January 2026 after the U.S. Maritime Administration granted the project its deep-water port license.

On May 4, Sentinel Midstream announced funding tied to the U.S.–Japan Trade Agreement, and construction began immediately afterward. The U.S. Commerce Department said the agreement will contribute an estimated $2.1 billion, the project’s originally announced cost.

Commerce Secretary Howard Lutnick said the project will "reinforce America's position as the world's leading energy supplier."

Capacity and design

Texas GulfLink is intended to handle up to two million barrels of crude oil daily. Sentinel says the terminal will open new international markets for growing domestic crude production, particularly in Asia, where VLCCs are considered ideal vessels. The article notes that the deep drafts of those ships make full loading at existing near-shore ports costly and inefficient.

Sentinel CEO Jeff Ballard said, "Texas GulfLink is about more than infrastructure, it is about unlocking the full potential of American energy. This project creates a direct path from one of the most liquid crude hubs in the world to global markets, strengthening our allies, improving trade dynamics and reinforcing the United States as the supplier of choice in an increasingly uncertain energy landscape. We are proud to be a trusted partner of both the U.S. and Japan governments and help lead the next chapter of American oil exports."

Alternative to reverse lightering

The project is also meant to reduce reliance on reverse lightering, a process in which as many as four smaller tankers move crude from port to larger vessels anchored offshore. Sentinel says direct loading at the offshore terminal will cut emissions by roughly 86 per cent compared with reverse lightering, while also reducing congestion at nearshore ports and improving maritime safety.

A key feature of the terminal is an active vessel-based vapour recovery system using a dynamic-positioned support vessel, which the article describes as the first of its kind in the U.S. The system is designed to pull alongside VLCCs during loading, capture volatile organic compounds and condense them into a marketable liquid product. The article says this is expected to prevent up to 19,000 tons of VOCs, including hazardous air pollutants, from being released each year.

Broader energy role

The article says officials view the terminal as a way to strengthen U.S. energy exports. U.S. Transportation Secretary Sean Duffy stated the Texas GulfLink project directly supports efforts to boost the U.S. domestic oil industry, positioning American producers "in the driver's seat." He added it also ensures the world can look to the United States rather than to foreign adversaries for its energy supply.

The project also fits into a longer history of Texas deep-water port development. The article traces that history from early trade through the 1914 dredging of the Houston Ship Channel and more recent energy logistics expansion, describing those milestones as underscoring Texas’s strategic role in global trade and energy logistics.

Read the source

Keywords:
Texas GulfLink,Sentinel Midstream,deep-water terminal,VLCC,offshore oil export
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