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Released July 29, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Midstream operator Enterprise Products Partners' (NYSE:EPD) (Houston, Texas) second-quarter net income held steady year-over-year, rising only slightly from last year to $1.1 billion in second-quarter 2021. While the company is planning more than $1 billion in growth capital expenditures (capex) this year, it plans to ramp this down in subsequent years. Although oil and gas transmission remains at the heart of Enterprise's business, the company is increasingly focusing on the petrochemical sector.
Enterprise is on more solid ground than it was this time a year ago, when the COVID-19 pandemic took hold in the U.S. and the rest of the world. In this week's earnings-related conference call with analysts, Co-Chief Executive Officer Jim Teague said, "Second-quarter results reflect the ongoing recovery and demand for hydrocarbons as the global economy continues to reopen from COVID lockdowns." The company transported 10.2 million barrels per of oil equivalent per day in the just-passed quarter. Teague said the company's fractionation volumes remained strong at 1.2 million barrels per day (BBL/d), and propylene production for the second quarter was a record 113,000 BBL/d. Teague said the 1.6 million BBL/d of liquid volumes handled by the company's marine terminals continued to lag pre-pandemic performance of 2 million BBL/d, primarily due to the weakness in crude oil exports.
Enterprise is planning about $1.7 billion in growth capex in 2021. Among the projects set for completion this year is the Acadian gas system in Louisiana. The 80-mile pipeline lateral will transport 1 billion cubic feet per day of natural gas from the Haynesville Shale to serve the state's burgeoning liquefied natural gas production sector. The project is expected to wrap up in the fourth quarter. Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipeline Database can click here for the project report.
Growth capex for 2022 and 2023 for projects currently sanctioned is $800 million and $400 million, respectively, but these figures are expected to increase as the number of sanctioned projects grows.
Teague said the long-dated capital was largely focused on Enterprise's second propane dehydrogenation (PDH) unit in Mont Belvieu, Texas. The estimated $1.2 billion project kicked off in the first half of last year, with S&B Engineers & Constructors Limited (Houston) providing engineering, procurement and construction services. Upon completion, the unit will double Enterprise's propylene production capacity at Mont Belvieu to 3.3 billion pounds per year. The project is expected to wrap up in 2023. Subscribers to Industrial Info's Production Database can click here for the detailed project report.
Teague spoke of the company's increasing shift to the petrochemicals sector. "We couldn't be more pleased with market fundamentals and momentum that we see in our petrochemicals business. The reopening of global economies has caused a surge in demand for propylene due to high demand from durables. ... Our Mont Belvieu propylene splitters achieved record throughput of 98% of nameplate with strong margins, and our PDH plant operated at an average of 112% of nameplate, following the planned maintenance in the first quarter."
Teague discussed the company's "petrochemical growth strategy," which includes Enterprise's recent acquisition of the ethylene storage business and trading hub of NOVA Chemicals Corporation (Calgary, Alberta) in Mont Belvieu. In a press release from earlier this month, an Enterprise executive said, "The acquisition, which gives Enterprise ownership of the largest ethylene market hub in Texas since it was established in 2001, will complement Enterprise's own growing ethylene network in the region."
Related Enterprise projects include a 90-mile grassroot ethylene pipeline from Bayport, Texas, to Markham, Texas. The project is a joint venture of Enterprise and Lavaca Pipe Line Company, a subsidiary of Formosa Plastics Corporation (Taiwan), and is expected to wrap up soon. Subscribers can click here for the project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Enterprise is on more solid ground than it was this time a year ago, when the COVID-19 pandemic took hold in the U.S. and the rest of the world. In this week's earnings-related conference call with analysts, Co-Chief Executive Officer Jim Teague said, "Second-quarter results reflect the ongoing recovery and demand for hydrocarbons as the global economy continues to reopen from COVID lockdowns." The company transported 10.2 million barrels per of oil equivalent per day in the just-passed quarter. Teague said the company's fractionation volumes remained strong at 1.2 million barrels per day (BBL/d), and propylene production for the second quarter was a record 113,000 BBL/d. Teague said the 1.6 million BBL/d of liquid volumes handled by the company's marine terminals continued to lag pre-pandemic performance of 2 million BBL/d, primarily due to the weakness in crude oil exports.
Enterprise is planning about $1.7 billion in growth capex in 2021. Among the projects set for completion this year is the Acadian gas system in Louisiana. The 80-mile pipeline lateral will transport 1 billion cubic feet per day of natural gas from the Haynesville Shale to serve the state's burgeoning liquefied natural gas production sector. The project is expected to wrap up in the fourth quarter. Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipeline Database can click here for the project report.
Growth capex for 2022 and 2023 for projects currently sanctioned is $800 million and $400 million, respectively, but these figures are expected to increase as the number of sanctioned projects grows.
Teague said the long-dated capital was largely focused on Enterprise's second propane dehydrogenation (PDH) unit in Mont Belvieu, Texas. The estimated $1.2 billion project kicked off in the first half of last year, with S&B Engineers & Constructors Limited (Houston) providing engineering, procurement and construction services. Upon completion, the unit will double Enterprise's propylene production capacity at Mont Belvieu to 3.3 billion pounds per year. The project is expected to wrap up in 2023. Subscribers to Industrial Info's Production Database can click here for the detailed project report.
Teague spoke of the company's increasing shift to the petrochemicals sector. "We couldn't be more pleased with market fundamentals and momentum that we see in our petrochemicals business. The reopening of global economies has caused a surge in demand for propylene due to high demand from durables. ... Our Mont Belvieu propylene splitters achieved record throughput of 98% of nameplate with strong margins, and our PDH plant operated at an average of 112% of nameplate, following the planned maintenance in the first quarter."
Teague discussed the company's "petrochemical growth strategy," which includes Enterprise's recent acquisition of the ethylene storage business and trading hub of NOVA Chemicals Corporation (Calgary, Alberta) in Mont Belvieu. In a press release from earlier this month, an Enterprise executive said, "The acquisition, which gives Enterprise ownership of the largest ethylene market hub in Texas since it was established in 2001, will complement Enterprise's own growing ethylene network in the region."
Related Enterprise projects include a 90-mile grassroot ethylene pipeline from Bayport, Texas, to Markham, Texas. The project is a joint venture of Enterprise and Lavaca Pipe Line Company, a subsidiary of Formosa Plastics Corporation (Taiwan), and is expected to wrap up soon. Subscribers can click here for the project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
