Friday, January 8, 2016
Enterprise Products Partners LP (Houston) has completed the final phase of its Houston Ship Channel LPG export terminal expansion, completed construction and initiated operation of the remaining leg of the Aegis pipeline, and has agreed to provide pipeline and marine terminal services to load an export of U.S.-produced crude oil. The LPG terminal expansion is among $7.8 billion in capital growth projects Enterprise expects to complete and bring into service by the end of 2017. The projects, supported by long-term contracts, are primarily focused on meeting the needs of demand-side customers such as petrochemical plants, refineries, and international businesses.
Enterprise’s export terminal will now be able to load about 27,500 barrels per hour (bbl/hr) compared to the former 16,500 bbl/hr. The incremental capacity was achieved through a new refrigeration train that increases loading capacity at the terminal from 9 MMbbl a month to 16 MMbbl a month, which equates to a total of about 29 vessels a month. “This terminal serves as the premier LPG export facility in the U.S. and the timing of these expansion projects could not have been better,” said A.J. (Jim) Teague, COO of Enterprise’s general partner. “In addition to meeting growing international demand for price-advantaged, domestic LPG, the terminal also benefits producers by providing market access and facilitating continued development of U.S. energy supplies.”
Enterprise has also completed the remaining 162-mile portion of the Aegis ethane pipeline from Lake Charles, La. to the Napoleonville, La. area. The 270-mile, 20-in.-dia. Aegis system originates at Mont Belvieu, the terminus for more than 3 MMbbld of NGL pipeline capacity. Mont Belvieu is connected to more than 2 MMbbld of fractionation capacity and is home to over 110 MMbbl of Enterprise-owned storage. Combined with the company’s South Texas pipeline network, Aegis is an integral part of an ethane header system capable of serving more than 20 petrochemical facilities along the Texas and Louisiana Gulf Coast.
“We are pleased to complete this final phase of the Aegis ethane pipeline,” said Teague. “The Aegis system provides price-advantaged ethane feedstock and supply flexibility for the expanding network of petrochemical facilities along a 500-mile corridor between Corpus Christi, Texas and the Mississippi River. These facilities are expected to represent more than 90% of domestic ethylene capacity within the next five years.” The Aegis project received strong interest, as indicated by the success of four open seasons, including the most recent from Nov. 1 to Nov. 30. Customers have executed contracts totaling 360,000 bbld that will ramp up over the next four years. With additional pumps, the pipeline will have the capacity to transport ethane at a rate of about 400,000 bbld.
Finally, Enterprise will load its first export cargo of crude oil under the law lifting the export restriction enacted in December. The 600,000-bbl cargo of domestic light crude was scheduled to load at the Enterprise Hydrocarbon Terminal on the Houston Ship Channel the first week of January. “We are excited to announce our first contract to export U.S. crude oil, which to our knowledge may be the first export cargo of U.S. crude oil from the Gulf Coast in almost 40 years,” said Teague. “Enterprise’s integrated system enabled us to quickly respond to customer demand for U.S. crude oil by international markets.
“We applaud the actions of Congress and President Obama to remove the ban on U.S. crude oil exports,” he added. “This law facilitates economic growth and job creation for the United States as well as enhances our national and energy security. This action provides new markets to domestic producers, especially producers of light crude oil, and will provide global markets with supply diversification.”
Enterprise’s export terminal will now be able to load about 27,500 barrels per hour (bbl/hr) compared to the former 16,500 bbl/hr. The incremental capacity was achieved through a new refrigeration train that increases loading capacity at the terminal from 9 MMbbl a month to 16 MMbbl a month, which equates to a total of about 29 vessels a month. “This terminal serves as the premier LPG export facility in the U.S. and the timing of these expansion projects could not have been better,” said A.J. (Jim) Teague, COO of Enterprise’s general partner. “In addition to meeting growing international demand for price-advantaged, domestic LPG, the terminal also benefits producers by providing market access and facilitating continued development of U.S. energy supplies.”
Enterprise has also completed the remaining 162-mile portion of the Aegis ethane pipeline from Lake Charles, La. to the Napoleonville, La. area. The 270-mile, 20-in.-dia. Aegis system originates at Mont Belvieu, the terminus for more than 3 MMbbld of NGL pipeline capacity. Mont Belvieu is connected to more than 2 MMbbld of fractionation capacity and is home to over 110 MMbbl of Enterprise-owned storage. Combined with the company’s South Texas pipeline network, Aegis is an integral part of an ethane header system capable of serving more than 20 petrochemical facilities along the Texas and Louisiana Gulf Coast.
“We are pleased to complete this final phase of the Aegis ethane pipeline,” said Teague. “The Aegis system provides price-advantaged ethane feedstock and supply flexibility for the expanding network of petrochemical facilities along a 500-mile corridor between Corpus Christi, Texas and the Mississippi River. These facilities are expected to represent more than 90% of domestic ethylene capacity within the next five years.” The Aegis project received strong interest, as indicated by the success of four open seasons, including the most recent from Nov. 1 to Nov. 30. Customers have executed contracts totaling 360,000 bbld that will ramp up over the next four years. With additional pumps, the pipeline will have the capacity to transport ethane at a rate of about 400,000 bbld.
Finally, Enterprise will load its first export cargo of crude oil under the law lifting the export restriction enacted in December. The 600,000-bbl cargo of domestic light crude was scheduled to load at the Enterprise Hydrocarbon Terminal on the Houston Ship Channel the first week of January. “We are excited to announce our first contract to export U.S. crude oil, which to our knowledge may be the first export cargo of U.S. crude oil from the Gulf Coast in almost 40 years,” said Teague. “Enterprise’s integrated system enabled us to quickly respond to customer demand for U.S. crude oil by international markets.
“We applaud the actions of Congress and President Obama to remove the ban on U.S. crude oil exports,” he added. “This law facilitates economic growth and job creation for the United States as well as enhances our national and energy security. This action provides new markets to domestic producers, especially producers of light crude oil, and will provide global markets with supply diversification.”
