Enterprise Products Expects 2023 Growth Capex of Up to $2.5 Billion

Researched by Industrial Info Resources (Sugar Land, Texas)--After spending $1.4 billion on growth capital expenditures (capex) in 2022, midstream company Enterprise Products Partners LP (NYSE:EPD) (Houston, Texas) is setting its sights higher for the coming year, expecting between $2.3 billion and $2.5 billion in growth capex for 2023. Industrial Info is tracking more than $21 billion worth of active projects attributable to Enterprise, with more than $2 billion worth presently under construction.

Enterprise's present project activity involves a range of midstream endeavors, including propane dehydrogenation (PDH), natural gas processing and natural gas liquids (NGL) fractionation. One of Enterprise's biggest projects is set to wrap up in the first half of this year. Construction of a second PDH unit at the company's complex in Mont Belvieu kicked off in 2020. Upon completion, expected in the coming months, the unit will add 1.65 billion pounds per year of propylene production capacity, using approximately 35,000 barrels per day (BBL/d) of propane as feedstock and doubling the facility's propylene production to 3.3 billion pounds per year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Project Database can click here for more details.

Also in Mont Belvieu, Enterprise is constructing a 12th NGL fractionator. The 150,000-BBL/d fractionator will bring the facility's total fractionation capacity to 1.25 million BBL/d to accommodate growing NGL volumes from the Permian and Eagle Ford basins. Engineering, procurement and construction (EPC) contractor S&B Engineers and Constructors Limited (Houston, Texas) kicked off construction early last year and is expected to wrap up this summer. Subscribers can click here for more information on the project.

Last year, Enterprise completed the acquisition of Navitas Midstream Partners LLC (The Woodlands, Texas), helping cement the company's place in the gathering, treating and processing of natural gas in the Midland Basin of the Permian and complementing its Delaware Basin assets. At the time, Navitas' assets included about 1,750 miles of pipelines and more than 1 billion cubic feet per day of cryogenic natural gas processing capacity. Among Enterprise's current projects coming under the Navitas umbrella is a grassroot natural gas processing plant near Stanton, Texas, in the Midland Basin. The facility will be able to process up to 350 million cubic feet per day of natural gas and produce more than 40,000 BBL/d of NGLs. Construction kicked off late last year and is expected to be completed this summer. Subscribers can click here for more details.

A possible second train could be added to the plant, although dirt would not turn on the project for some time. Subscribers can click here for the report on Train II.

And that's not the only gas-processing facility Enterprise is at work on. EPC contractor Optimized Process Designs LLC (Katy, Texas) kicked off work on a second processing train at Enterprise's facility near Mentone, Texas, last summer. The second train will add 300 million cubic feet per day of natural gas processing and 30,000 BBL/d of NGL/condensate production, bringing the plant's total capacity to 600 million cubic feet per day of natural gas processing and 60,000 BBL/d of NGLs. The project is expected to be completed later this year. Subscribers can click here for the full report.

In addition to its PDH capacity, Enterprise is showing further interest in the petrochemical sector and is considering a potential ethylene plant in Texas, going so far as to apply for a tax break for property along the Neches River in Beaumont. Subscribers to Industrial Info's Chemical Processing Project Database can click here to learn more.

Further upstream, Enterprise is planning a possible third ethane refrigeration train at its Morgan's Point export terminal in La Porte, Texas. The facility has a current loading rate of up to 120,000 BBL/d, and a third train could increase this by 50%. While the project has seen some slippage from its originally proposed kickoff date, it could potentially start later this year, putting it on track for completion in 2024. Subscribers to Industrial Info's Terminals Project Database can click here for more information.

Enterprise reported fourth-quarter 2022 net income of $1.45 billion, compared with $1.06 billion in fourth-quarter 2021.

Subscribers to Industrial Info's GMI Database can click here for a look at all of the reports for projects discussed in this article, and click here for the related plant profiles.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).