Enterprise Products Expects to Complete $1.4 Billion in Growth Projects in Second-Half 2016

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Researched by Industrial Info Resources (Sugar Land, Texas)--Enterprise Products Partners L.P. (NYSE:EPD) (Houston, Texas) is on schedule to complete construction and begin commercial service for $1.4 billion of growth projects for the remainder of this year, including an $800 million ethane export facility on the Houston Ship Channel in Texas, according to company executives. On top of that, the company says it has $5.2 billion of growth capital projected scheduled for completion in 2017 and 2018, including a $900 million propane dehydrogenation (PDH) unit at its Mont Belvieu, Texas site.

The ethane export facility is set for completion this month. Located on Morgan's Point on the Houston Ship Channel, the fully refrigerated facility will be able load 10,000 barrels per hour and be integrated with Enterprise Products' Mont Belvieu natural gas liquids (NGL) fractionation and storage complex. According to the company's presentation this week at the Citi MLP/Midstream Infrastructure Conference, U.S. ethane demand will increase by 800,000 barrels per day from 2015 to 2020. However, ethane supply could continue to hover above that demand level through this period, hence the need for exports.

For related information, see March 23, 2016, article - Enterprise Products Expects to Complete Ethane Export Terminal this Summer.

The PDH unit, which is scheduled to be in service in second-quarter 2017, will produce 1.65 billion pounds per year of polymer grade propylene. The company said potential competition from other PDH units has been greatly reduced, with six PDH projects being cancelled or indefinitely delayed. And although propylene is in a low price environment, such prices don't necessarily mean low margins, the company said. International demand for propylene has resulted in attractive export opportunities.

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