Enterprise Boosts Houston LPG Export Capacity
- 31-Jul-2024 12:26 PM
- Journalist: Rene Swann
Enterprise Products Partners L.P. (NYSE: EPD) has announced a major expansion project along the Houston Ship Channel to meet rising customer demand for natural gas liquids export capacity. At the Enterprise Hydrocarbons Terminal (EHT), the company will enhance its refrigeration infrastructure, boosting propane and butane export capacity by approximately 300,000 barrels per day (BPD). This expansion will not only increase the overall capacity for Liquefied Petroleum Gas (LPG) but also improve instantaneous loading rates for propane and butane. Additionally, the upgrade will provide extra capacity for propylene exports. The expanded service is projected to commence by the end of 2026.
The increased demand for LPG capacity at Enterprise Products Partners L.P.’s Enterprise Hydrocarbons Terminal (EHT) is largely driven by the success of their contracting efforts at the Neches River Terminal (NRT) in Orange County, Texas. This terminal, situated next to the Beaumont East refined products terminal, is undergoing Phase 1 of its expansion. This phase includes a new loading dock, an ethane refrigeration train with a 120,000-barrel-per-day (BPD) capacity, and a 900,000-barrel refrigerated tank designed for loading rates of up to 45,000 barrels per hour. The first phase of the NRT expansion is scheduled to start operations in the second half of 2025.
Phase 2 of the Neches River Terminal (NRT) expansion will introduce a second refrigeration train, enabling Enterprise to handle up to 180,000 barrels per day (BPD) of ethane, 360,000 BPD of propane, or a mix of both. This phase is projected to commence operations in the first half of 2026. The growth capital required for both the Enterprise Hydrocarbons Terminal (EHT) and NRT projects is aligned with the company's previously forecasted capital expenditure ranges for 2024 and beyond, ensuring strategic investment within planned financial parameters.
A.J. “Jim” Teague, co-CEO of Enterprise's general partner, highlighted the substantial interest in ethane and LPG exports across their system. He noted that the increased demand for U.S. hydrocarbons underscores Enterprise's capability to efficiently and cost-effectively expand their infrastructure to meet these needs.
Enterprise Products Partners L.P. is a North American energy infrastructure behemoth. As a leading publicly traded partnership, the company provides a comprehensive suite of midstream services to both upstream and downstream energy players. With a robust network encompassing over 50,000 miles of pipelines, substantial storage capacity for a variety of energy commodities, and a significant presence in marine transportation, Enterprise is strategically positioned to facilitate the efficient movement and processing of natural gas, NGLs, crude oil, refined products, and petrochemicals across the continent.