Joint Venture to Extend Ethylene Pipeline Network in South Texas

Enterprise Products Partners announced on Tuesday that under a joint venture with Lavaca Pipeline Co., they are planning to construct a 90 mile Baymark pipeline. The pipeline will carry ethylene and will run from Bayport area southeast of Harris County to Markham, Texas.

The Baymark pipeline will link to Enterprises’ Mont Belvieu complex, a 600 million-pound ethylene storage well. The pipeline will also link to Enterprises' ethylene export terminal at Morgan Point near La Porte, Texas.

As the petrochemical export boom rolls on, U.S. ethane production is projected to increase nearly 60 percent to 2 million barrels a day by 2021, up from 1.26 million barrels a day in 2016. U.S producers are taking advantage of the soaring ethane production unleashed by the shale boom to produce ethylene at a relatively cheaper cost.

"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, chief executive officer of Enterprise's general partner in a statement. "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."

Source:
houstonchronicle