Tuesday, October 15, 2019
(October 15, 2019) — Affiliates of LyondellBasell Industries NV (Rotterdam) and Enterprise Products LP (Houston) have signed long-term contracts supporting construction of Enterprise’s second propane dehydrogenation (PDH) plant. PDH 2, to be located in Mont Belvieu, Texas, will have the capacity to consume up to 35,000 bbld of propane and produce up to 1.65 billion pounds of polymer-grade propylene (PGP) a year. The facility is scheduled to commence service in the first half of 2023.
Enterprise has licensed Honeywell UOP’s Oleflex propane process to produce PGP. Enterprise has more than 25 years of experience with the technology. The company’s isobutane dehydrogenation plant (iBDH), which started operations in 1993, uses the Oleflex butane process. The partnership is building a second iBDH facility utilizing the same system. That plant is expected to be completed later his year, on time and on budget. Construction of PDH 2 is expected to provide 1500 to 2000 jobs, which will further support economic activity in the greater Mont Belvieu and Baytown area.
Enterprise has negotiated terms for a fixed-cost engineering, procurement, and construction contract with S&B Engineers and Constructors Ltd. (S&B; Houston) to build PDH 2. Enterprise’s experience with S&B dates back to 1995, and construction projects it has undertaken for Enterprise include deisobutanizers and nine NGL fractionators in Mont Belvieu, the Hobbs fractionator, and the partnership’s ethane export facility on the Houston Ship Channel.
“We are very pleased to enter into these agreements to further expand our already extensive relationship with LyondellBasell,” said A.J. (Jim) Teague, CEO of Enterprise’s general partner. “PGP is a primary petrochemical that can be converted into hundreds of products that improve the daily lives of people around the world. Demand growth for these propylene-based products is strong and PDH 2 will provide cost-advantaged supply assurance to our customers, enabling expansion of their downstream businesses to satisfy this global demand.”
“For nearly 30 years Enterprise has proven to be a capable, reliable partner for LyondellBasell,” said Bob Patel, company CEO. “As we aim to meet the growing demand for our products, ensuring a long- term supply of feedstock is critical. These agreements allow us to leverage Enterprise’s construction expertise, operating experience, and robust network as we continue to deliver an outstanding value proposition for our customers.”
Enterprise began its fee-based midstream petrochemical service business with the development of its first propylene fractionator in 1978. PDH is being developed with the same fee-based model. Anchor contracts are service-based, under which Enterprise processes propane provided by Lyondell-Basell into PGP for a fixed fee. The fee-based model leverages Enterprise’s integrated value chain by providing sourcing and storage from the company’s NGL facilities in Mont Belvieu and delivers PGP into Enterprise’s open-market storage hub and growing network of pipeline infrastructure. The network of PGP assets includes more than 300 miles of delivery pipelines, 26 PGP connections, more than 5 MMbbl of storage capacity, and an export terminal on the Houston Ship Channel. Enterprise is expanding PGP refrigeration facilities at the terminal, which will enable it to load PGP on vessels at a rate of more than 5000 bbl an hour, as well a co-load PGP and LPG on very large gas carriers.
Enterprise’s Mont Belvieu NGL fractionation and storage system supporting PDH 2 has 760,000 bbld of fractionation capacity, with another 300,000 bbld under construction. In addition, the complexes have more than 100 MMbbl of NGL and petro- chemical storage. The integration of the PDH 1 and PDH 2 plants with Enterprise’s propylene fractionation facilities provides operational flexibility for both processes and a combined PGP supply of more than 9 billion pounds a year.
LyondellBasell, with U.S. headquarters is in Houston, is one of the largest plastics, chemicals, and refining companies in the world. Its products enhance food safety; protect water purity; improve the safety, comfort, and fuel efficiency of cars and trucks; and ensure the safe and effective functionality of electronics and appliances. The company’s products are sold in more than 100 countries.
(SOURCE: The Weekly Propane Newsletter, Oct. 14, 2019. Available by subscription.)
Enterprise has licensed Honeywell UOP’s Oleflex propane process to produce PGP. Enterprise has more than 25 years of experience with the technology. The company’s isobutane dehydrogenation plant (iBDH), which started operations in 1993, uses the Oleflex butane process. The partnership is building a second iBDH facility utilizing the same system. That plant is expected to be completed later his year, on time and on budget. Construction of PDH 2 is expected to provide 1500 to 2000 jobs, which will further support economic activity in the greater Mont Belvieu and Baytown area.
Enterprise has negotiated terms for a fixed-cost engineering, procurement, and construction contract with S&B Engineers and Constructors Ltd. (S&B; Houston) to build PDH 2. Enterprise’s experience with S&B dates back to 1995, and construction projects it has undertaken for Enterprise include deisobutanizers and nine NGL fractionators in Mont Belvieu, the Hobbs fractionator, and the partnership’s ethane export facility on the Houston Ship Channel.
“We are very pleased to enter into these agreements to further expand our already extensive relationship with LyondellBasell,” said A.J. (Jim) Teague, CEO of Enterprise’s general partner. “PGP is a primary petrochemical that can be converted into hundreds of products that improve the daily lives of people around the world. Demand growth for these propylene-based products is strong and PDH 2 will provide cost-advantaged supply assurance to our customers, enabling expansion of their downstream businesses to satisfy this global demand.”
“For nearly 30 years Enterprise has proven to be a capable, reliable partner for LyondellBasell,” said Bob Patel, company CEO. “As we aim to meet the growing demand for our products, ensuring a long- term supply of feedstock is critical. These agreements allow us to leverage Enterprise’s construction expertise, operating experience, and robust network as we continue to deliver an outstanding value proposition for our customers.”
Enterprise began its fee-based midstream petrochemical service business with the development of its first propylene fractionator in 1978. PDH is being developed with the same fee-based model. Anchor contracts are service-based, under which Enterprise processes propane provided by Lyondell-Basell into PGP for a fixed fee. The fee-based model leverages Enterprise’s integrated value chain by providing sourcing and storage from the company’s NGL facilities in Mont Belvieu and delivers PGP into Enterprise’s open-market storage hub and growing network of pipeline infrastructure. The network of PGP assets includes more than 300 miles of delivery pipelines, 26 PGP connections, more than 5 MMbbl of storage capacity, and an export terminal on the Houston Ship Channel. Enterprise is expanding PGP refrigeration facilities at the terminal, which will enable it to load PGP on vessels at a rate of more than 5000 bbl an hour, as well a co-load PGP and LPG on very large gas carriers.
Enterprise’s Mont Belvieu NGL fractionation and storage system supporting PDH 2 has 760,000 bbld of fractionation capacity, with another 300,000 bbld under construction. In addition, the complexes have more than 100 MMbbl of NGL and petro- chemical storage. The integration of the PDH 1 and PDH 2 plants with Enterprise’s propylene fractionation facilities provides operational flexibility for both processes and a combined PGP supply of more than 9 billion pounds a year.
LyondellBasell, with U.S. headquarters is in Houston, is one of the largest plastics, chemicals, and refining companies in the world. Its products enhance food safety; protect water purity; improve the safety, comfort, and fuel efficiency of cars and trucks; and ensure the safe and effective functionality of electronics and appliances. The company’s products are sold in more than 100 countries.
(SOURCE: The Weekly Propane Newsletter, Oct. 14, 2019. Available by subscription.)
