Enterprise Products to Extend Ethylene Pipeline Network

Enterprise Products Partners LP (Houston) is extending its ethylene pipeline and logistics system further into South Texas, a leading growth area for new crackers and ethylene derivative plants. The Baymark ethylene pipe- line will originate in the Bayport area of southeast Harris County and extend about 90 miles to Markham, Texas in Matagorda County.

The new pipeline is supported by long-term customer commitments and is scheduled to commence service in the fourth quarter of 2020. The project is a joint venture between Enterprise Products and Lavaca Pipe Line Co., a subsidiary of Taiwan’s Formosa Plastics Corp. USA. Enterprise will be the majority owner, operator, and commercial manager of the new pipeline.

“The U.S. petrochemical industry is experiencing unprecedented growth, with production of ethylene expected to exceed 100 billion pounds per year by 2025,” said A.J. (Jim) Teague, CEO of Enterprise’s general partner. “This growth in the petrochemical sector is creating additional opportunities for Enterprise to grow our midstream petrochemical services. The Baymark Pipeline further extends our petrochemical value chain, providing producing and consuming customers with enhanced access to the largest liquids storage hub in North America at Mont Belvieu, as well as linking them to growing domestic and international markets.”

The Baymark Pipeline will provide access to a high-capacity ethylene storage well Enterprise is repurposing at Mont Belvieu, in addition to connectivity to the ethylene export terminal currently under construction at Morgan’s Point. The storage well is expected to be completed in the third quarter of this year and will have a capacity of 600 million pounds. The terminal will have the ability to export about 2.2 billion pounds of ethylene a year and is on schedule to begin service in the fourth quarter.

(SOURCE: The Weekly Propane Newsletter, June 10, 2019)