Enterprise Announces Additional Expansion Projects at Houston Ship Channel Terminal
July 08 2019 - 4:05PM
Business Wire
Enterprise Products Partners L.P. (NYSE: EPD) (“Enterprise”)
today announced three additional expansion projects that will
increase the partnership’s capacity to load liquefied petroleum gas
(“LPG”), polymer grade propylene (“PGP”) and crude oil from its
Enterprise Hydrocarbon Terminal (“EHT”) on the Houston Ship
Channel.
Currently, Enterprise’s nameplate LPG loading capacity is
approximately 660,000 barrels per day (“BPD”). Previously,
Enterprise announced a project to add 175,000 BPD of LPG loading
capacity, which is currently under construction and expected to be
completed late third quarter of 2019. The additional projects
announced today will increase incremental LPG loading capacity by
another 260,000 BPD and are expected to be in service in the third
quarter of 2020. When completed, the projects will give EHT
nameplate capacity to load up to almost 1.1 million BPD of LPG, or
approximately 33 million barrels per month.
In response to record demand for PGP by international markets,
the partnership is adding refrigeration facilities at its Houston
Ship Channel terminal that will enable Enterprise to load up to an
incremental 67,200 BPD, or approximately 2 million barrels per
month, of fully refrigerated PGP. With this expansion project,
Enterprise will increase flexibility by offering customers the
capability to co-load fully refrigerated PGP and LPG onto the same
vessel. This expansion is expected to be available in the fourth
quarter of 2020.
As part of the expansion, Enterprise is also building an eighth
dock at its Houston Ship Channel terminal with the capability to
load approximately 840,000 BPD of crude oil, increasing the
partnership’s nameplate export capacity for crude oil at the
Houston Ship Channel to 2.75 million BPD, or nearly 83 million
barrels per month. Expected to begin service in the fourth quarter
of 2020, the new dock will be able to accommodate a Suezmax vessel,
the largest ship class that can navigate the Houston Ship
Channel.
“We are pleased to announce this additional investment in our
Houston Ship Channel marine terminals,” said A.J. “Jim” Teague,
chief executive officer of Enterprise’s general partner. “In total
these expansions will enable us to load an incremental 1.3 million
BPD of LPG, polymer grade propylene and crude oil. Our integrated
midstream system, including our Houston Ship Channel terminal, is
providing Texas products with access to the highest value markets,
including international markets. These projects utilize the latest
technology to modify and expand existing facilities and represent a
very efficient use of capital with attractive returns. A key driver
and catalyst to make these additional investments in our Houston
Ship Channel complex is clarity and certainty provided by recent
legislation signed into law by Governor Abbott that ensures two-way
traffic along the Houston Ship Channel.”
Enterprise estimates that by 2025 exports of U.S. crude oil will
increase from 3 million BPD to 8 million BPD and the domestic LPG
export market will double from 1.4 million BPD to 2.8 BPD. Much of
this growth is being driven by increasing production from the
Permian Basin of Texas. The flexibility of the partnership’s
integrated midstream network, combined with unmatched access to
supplies, position Enterprise to capitalize on future growth
opportunities along the Gulf Coast.
Enterprise Products Partners L.P. is one of the largest publicly
traded partnerships and a leading North American provider of
midstream energy services to producers and consumers of natural
gas, NGLs, crude oil, refined products and petrochemicals. Our
services include: natural gas gathering, treating, processing,
transportation and storage; NGL transportation, fractionation,
storage and import and export terminals; crude oil gathering,
transportation, storage and terminals; petrochemical and refined
products transportation, storage and terminals; and a marine
transportation business that operates primarily on the United
States inland and Intracoastal Waterway systems. The partnership’s
assets currently include approximately 49,200 miles of pipelines;
260 million barrels of storage capacity for NGLs, crude oil,
petrochemicals and refined products; and 14 billion cubic feet of
natural gas storage capacity.
This press release includes “forward-looking statements” as
defined by the Securities and Exchange Commission. All statements,
other than statements of historical fact, included herein that
address activities, events, developments or transactions that
Enterprise and its general partner expect, believe or anticipate
will or may occur in the future are forward-looking statements.
These forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially
from expectations, including required approvals by regulatory
agencies, the possibility that the anticipated benefits from such
activities, events, developments or transactions cannot be fully
realized, the possibility that costs or difficulties related
thereto will be greater than expected, the impact of competition,
and other risk factors included in Enterprise’s reports filed with
the Securities and Exchange Commission. Readers are cautioned not
to place undue reliance on these forward-looking statements, which
speak only as of their dates. Except as required by law, Enterprise
does not intend to update or revise its forward-looking statements,
whether as a result of new information, future events or
otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20190708005688/en/
Randy Burkhalter, Investor Relations, (713) 381-6812 or (866)
230-0745 Rick Rainey, Media Relations (713) 381-3635
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