Enterprise Plans to Expand Mont Belvieu Operations

Enterprise Products Partners and petrochemical giant LyondellBasell announced the plans to add a second polypropylene plant named PDH 2 to Enterprise’s Mont Belvieu complex. Enterprise already has a long-term propylene supply deal with LyondellBasell.

The contract is large enough to support the construction of another propane dehydrogenation plant at its natural gas liquids processing complex in Mont Belvieu, Enterprise reported.

"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," Enterprise CEO Jim Teague said in a statement.

The plant will be able to convert 35,000 barrels of propane per day into 1.65 billion pounds per year of polymer grade propylene, a chemical that is key ingredient in making plastics.

"As we aim to meet the growing demand for our products, ensuring a long-term supply of feedstock is critical," LyondellBasell CEO Bob Patel said. "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."


Export Auction for WTI Crude Oil to Be Held by Enterprise Products Partners

An electronic auction will be held on April 4th by Enterprise Products Partners for its domestically produced West Texas Intermediate crude oil that will be exported from its Houston Ship Channel terminal.

Enterprise has become the largest exporter of crude oil in the United States since the federal government lifted a ban on exporting crude oil less than four years ago, which accounts for nearly 40 percent of crude oil shipments abroad. Chicago-based trading firm CME Group will conduct the online auction on behalf of Enterprise.

"With the recent success of the first ever electronic auction of U.S. crude oil for export, the market has demonstrated its demand for transparency, efficiency, accurate physical pricing and access to reliable supplies of crude oil with consistent quality standards," Enterprise Senior Vice President Brent Secrest said in a Wednesday morning statement.

Using Enterprise's distribution network, the Houston futures contract has access to more than 4 million barrels per day of crude oil, 45 million barrels of crude oil storage and 18 deep-water docks.


Enterprise Products Partners Looking at 100,000 Bpd Expansion

Enterprise Products Partners LP said on Wednesday that they have plans for their Seaway crude pipeline system capacity to increase to about 950,000 barrels per day from 850,000 bpd.

The company will add drag reducing agents (DRAs) to boost capacity on the Seaway 2 line by about 100,000 bpd by September. The Seaway system moves crude from Crushing, Oklahoma, to Gulf Coast refineries.

Enterprise said that they are carefully evaluating options to convert natural gas liquids pipelines to crude oil in order to alleviate pipeline constraints in the Permian Basin, among other expansion options.

Enterprise was planning on developing an offshore crude oil export terminal, according to statements made in July. The terminal would load Very Large Crude Carriers (VLCCs) off the Texas Gulf Coast.

U.S. producers and international customers are interested in the project, according to the company.


Enterprise Products Partners to Build Massive Billion Dollar Export Terminal

Enterprise Products Partners announced on Tuesday that it is planning to construct a $1 billion to $2 billion oil and export terminal off the Texas coastline to accommodate the world’s largest crude-carrying vessels.

A sea based terminal solves a critical problem for very large crude carriers, or VLCCs, which have recently been heading to Texas instead of the Panama Canal due to recent widening of the canal.

Regardless, Texas ports aren’t able to have ships fill at capacity due to water depth, so Enterprise plans on building pipelines to run about 80 miles from its Houston-area network to an offshore terminal where water is naturally deeper.

It is a project that could take years to be completed. Enterprise expects the state and federal permitting process could take roughly a year before construction can even begin.

“Enterprise is making sure U.S. production doesn’t get gridlocked at the Gulf Coast,” said Colton Bean, an energy analyst with Tudor, Pickering, Holt & Co. in Houston. “The refining system isn’t really expanding much in North America, so exports are your one key relief valve.”

Houston Chronicle

Enterprise Products Partners' Income Jumps 17 Percent; Has Several Projects in the Works

Enterprise Products Partners announced a second quarter income jump of 17 percent from last year, saying the gains are due to the Texas shale boom and the company's forward thinking.

"We believe the increase in rig counts and drilled, uncompleted wells will result in higher levels of production flowing into our system later in 2017. We are already seeing a volume response to producer activities in the Permian and Haynesville regions," said Enterprise CEO Jim Teague.

The Houston pipeline giant is building several new natural gas liquids and petrochemical projects in the Houston region. Enterprise is also now the country's biggest exporter of goods related to NGLs.

Enterprise is working on an array of projects, including its propane dehydration facility in Mont Belvieu, which it hopes to have completed by September.

The company is also planning to build a terminal along the Houston Ship Channel to export the primary building block of most plastics, ethylene.

Enterprise said last spring that it plans to build a 571-mile pipeline from the Permian Basin to Houston to transport NGLs. It will also expand its existing Midland-to-Houston crude oil pipeline.

Fuel Fix

Major Texas Oil Pipeline Back in Service after Rupture

A major Texas oil pipeline that was shut down after a rupture resumed operations Sunday after necessary repairs, according to Seaway Crude Pipeline Co.

The 500-mile Seaway S-1 oil pipeline, a 50/50 venture between Enterprise Products Partners and Enbridge Inc, was shut down last week after it was punctured by a third party contractor working on road construction. Oil spewed several stories high into the air and onto a major Dallas highway.

Pipeline representatives have not reported how much oil was spilled from the incident, but no injuries or fires occurred as a result.

The Seaway S-1 carries 400,000 barrels per day from Cushing, Oklahoma down to the U.S. Gulf Coast.



Enterprise Products Partners: Seaway Pipeline to Resume Operation after Rupture

A major Texas oil pipeline that was shut down Tuesday after a rupture and leak will resume operation on or before next Tuesday, according to pipeline operator Enterprise Products Partners.

A section of the 500-mile Seaway S-1 oil pipeline was struck by a third-party contractor during construction in Dallas, Texas on Monday, sending oil stories-high into the air and onto a major highway.

According to a company statement, Enterprise Products Partners is making progress in repairing the line, which the company shut down after the incident.

The Seaway S-1 pipeline carries 400,000 barrels per day of crude from Cushing, Oklahoma to the Gulf Coast. The pipeline is a 50/50 joint venture between Enterprise Products Partners and Enbridge Inc.



Enterprise Announces Pascagoula Plant Back in Service After Explosion, Shutdown in June

Enterprise Products Partners announced that its Pascagoula natural gas processing plant in Moss Point, Mississippi has been fully restarted after being shut down for about 6 months due to two explosions and a resulting fire at the plant in June.

Enterprise did not disclose the current operational rates of the plant, but before the incident in June the plant was averaging about 400 million cubic feet per day of inlet-gas volumes.

The cause of the explosions and resulting fire at the plant in June is still being investigated, and the US Chemical Safety Board said it expects that determining the cause of the incident will require complex work given significant damage that resulted.

Oil & Gas Journal

Enterprise Announces Natural Gas Plant Project for Delaware Basin

A Natural Gas Processing Facility By ReAl (Own work) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons

Enterprise Products Partners announced yesterday that they plan to construct a “new cryogenic natural gas processing facility and associated natural gas and natural gas liquids (NGL) pipeline infrastructure to facilitate growth of NGL-rich natural gas production in the Delaware Basin of West Texas and southeastern New Mexico.”

The processing plant, whose site location is currently undetermined, will have a nameplate capacity of 300 million cubic feet per day and the capability to extract more than 40,000 barrels per day of natural gas liquids. The plant is expected to begin operations mid 2018.

The announcement of this natural gas processing plant makes Enterprise’s third announced project in the region within the last 2 years. The South Eddy facility started operations earlier this year, and the Waha joint venture plant will begin operations late this year. These initiatives along with the third project announced today complement Enterprise’s ongoing growth in the region, bringing their processing capability in the Delaware Basin from 40 million cubic feet per day in 2012 to 800 million cubic feet per day.

Construction of the new natural gas processing plant also includes natural gas gathering lines, a residue pipeline to Waha, and an NGL pipeline to Enterprise’s Mid-America Pipeline system.

Enterprise Products Partners