Reports related to this article:
Project(s): View 6 related projects in PECWeb
Plant(s): View 4 related plants in PECWeb
Released February 02, 2022 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--It's been a rocky few weeks in the global markets, but Enterprise Products Partners LP (NYSE:EPD) (Houston, Texas) believes the global economic recovery will continue as U.S. crude oil, natural gas and natural gas liquids (NGL) production grows, especially in the Permian Basin and Haynesville Shale. Industrial Info is tracking more than $7.7 billion worth of active projects from Enterprise, including $1.5 billion worth in the deepwater Gulf of Mexico.
Enterprise saw its full-year 2021 profits increase 23% from 2020 to $4.63 billion, while its revenues jumped 50% to $40.81 billion. In the fourth quarter alone, profits exceeded $1 billion, compared with only $337 million in fourth-quarter 2020, while revenue increased 61% to $11.4 billion.
For 2022, Enterprise expects growth capital investments to total roughly $1.5 billion, which does not include one of the company's highest-profile projects: the proposed Seaport Oil Terminal (SPOT) in the deepwater Gulf of Mexico, as it has not yet received government approval. Executives have indicated they expect to receive necessary federal permits this spring for the facility, which would be located 30 to 35 miles off the coast of Brazoria County, Texas.
Click on the image at right for a graph detailing Enterprise's active projects, by project type.
The SPOT facility is designed to load and export up to 2 million barrels per year of crude oil in very large crude carriers (VLCC), via a pipeline that would run from Enterprise's proposed Oyster Creek Crude Terminal in Freeport, Texas, which would be capable of holding up to 4.2 million barrels. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can read detailed reports on the SPOT and Oyster Creek projects.
Enterprise also is seeking permits for an expansion to its ECHO Crude Oil Terminal in Houston, to better accommodate its supply for oil to the Oyster Creek terminal. A 179 million-barrel-per-day increase in volumes on the pipeline system supplying the ECHO terminal with oil from Enterprise's 6 million-barrel storage facility in Midland, Texas, which sits in the heart of the Permian Basin, significantly boosted Enterprise's crude oil terminal revenues in the fourth quarter. Subscribers can learn more from Industrial Info's project report.
Energy investors have been on pins and needles over the past few weeks as Russia's threats to invade Ukraine have roiled global markets, but Enterprise executives believe the crisis could present U.S. developers with a unique opportunity. "The current energy supply disruptions and geopolitical tensions in Europe may have a short-term effect on the global economy," said Jim Teague, the co-chief executive officer of Enterprise, in a quarterly earnings-related press release. "These energy supply disruptions, however, may lead to greater long-term international demand for U.S. crude oil, natural gas and NGLs as a source of reliable supply and to mitigate higher global prices, especially for LNG."
The U.S. now holds the world's top spot in liquefied natural gas (LNG) exports, and demand for natural gas as a feedstock will only continue to soar. The pipeline and terminal industries will need to accommodate the rising production with expanded capacity. For more details on this trend, see January 31, 2022, article - 2022 Market Outlook: Rising Production Means More Expansions to Processing Plants, Pipelines.
Teague also said that Enterprise's largest project under construction, the $1.2 billion Propane Dehydrogenation (PDH) Unit 2 addition at its NGL Fractionator Complex in Mont Belvieu, Texas, is expected to be completed in the second quarter of 2023. Higher average sales margins, fractionation fees and sales volumes led to a $23 million increase in the gross operating margin at Enterprise's Mont Belvieu facilities in the fourth quarter. Subscribers can learn more about the PDH Unit 2 from Industrial Info's project report.
Teague noted Enterprise completed the Gillis expansion of its Acadian natural gas pipeline system in December, which will bolster the delivery of gas produced in the Haynesville Shale to LNG export facilities in South Louisiana. Enterprise also is considering an additional compressor station near Lena, Louisiana, which would further bolster capacity on the pipeline. Subscribers can read detailed reports on the Gillis expansion and proposed compressor station.
Enterprise also is among the midstream companies dipping its toes into the development of carbon-capture and storage (CCS) technology. During December's World Petroleum Congress, Teague said the company is open to repurposing some of its existing pipeline network for CCS projects, but that a lack of regulatory guidelines and little transparency in carbon pricing made it difficult to move forward. For more information on how the midstream industry is adapting to growing calls for emission reduction, see January 21, 2022, article - 2022 Market Outlook: U.S., Canada to Benefit from Global Adoption of Carbon-Reduction Technology.
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 saw its full-year 2021 profits increase 23% from 2020 to $4.63 billion, while its revenues jumped 50% to $40.81 billion. In the fourth quarter alone, profits exceeded $1 billion, compared with only $337 million in fourth-quarter 2020, while revenue increased 61% to $11.4 billion.
For 2022, Enterprise expects growth capital investments to total roughly $1.5 billion, which does not include one of the company's highest-profile projects: the proposed Seaport Oil Terminal (SPOT) in the deepwater Gulf of Mexico, as it has not yet received government approval. Executives have indicated they expect to receive necessary federal permits this spring for the facility, which would be located 30 to 35 miles off the coast of Brazoria County, Texas.
Click on the image at right for a graph detailing Enterprise's active projects, by project type.The SPOT facility is designed to load and export up to 2 million barrels per year of crude oil in very large crude carriers (VLCC), via a pipeline that would run from Enterprise's proposed Oyster Creek Crude Terminal in Freeport, Texas, which would be capable of holding up to 4.2 million barrels. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can read detailed reports on the SPOT and Oyster Creek projects.
Enterprise also is seeking permits for an expansion to its ECHO Crude Oil Terminal in Houston, to better accommodate its supply for oil to the Oyster Creek terminal. A 179 million-barrel-per-day increase in volumes on the pipeline system supplying the ECHO terminal with oil from Enterprise's 6 million-barrel storage facility in Midland, Texas, which sits in the heart of the Permian Basin, significantly boosted Enterprise's crude oil terminal revenues in the fourth quarter. Subscribers can learn more from Industrial Info's project report.
Energy investors have been on pins and needles over the past few weeks as Russia's threats to invade Ukraine have roiled global markets, but Enterprise executives believe the crisis could present U.S. developers with a unique opportunity. "The current energy supply disruptions and geopolitical tensions in Europe may have a short-term effect on the global economy," said Jim Teague, the co-chief executive officer of Enterprise, in a quarterly earnings-related press release. "These energy supply disruptions, however, may lead to greater long-term international demand for U.S. crude oil, natural gas and NGLs as a source of reliable supply and to mitigate higher global prices, especially for LNG."
The U.S. now holds the world's top spot in liquefied natural gas (LNG) exports, and demand for natural gas as a feedstock will only continue to soar. The pipeline and terminal industries will need to accommodate the rising production with expanded capacity. For more details on this trend, see January 31, 2022, article - 2022 Market Outlook: Rising Production Means More Expansions to Processing Plants, Pipelines.
Teague also said that Enterprise's largest project under construction, the $1.2 billion Propane Dehydrogenation (PDH) Unit 2 addition at its NGL Fractionator Complex in Mont Belvieu, Texas, is expected to be completed in the second quarter of 2023. Higher average sales margins, fractionation fees and sales volumes led to a $23 million increase in the gross operating margin at Enterprise's Mont Belvieu facilities in the fourth quarter. Subscribers can learn more about the PDH Unit 2 from Industrial Info's project report.
Teague noted Enterprise completed the Gillis expansion of its Acadian natural gas pipeline system in December, which will bolster the delivery of gas produced in the Haynesville Shale to LNG export facilities in South Louisiana. Enterprise also is considering an additional compressor station near Lena, Louisiana, which would further bolster capacity on the pipeline. Subscribers can read detailed reports on the Gillis expansion and proposed compressor station.
Enterprise also is among the midstream companies dipping its toes into the development of carbon-capture and storage (CCS) technology. During December's World Petroleum Congress, Teague said the company is open to repurposing some of its existing pipeline network for CCS projects, but that a lack of regulatory guidelines and little transparency in carbon pricing made it difficult to move forward. For more information on how the midstream industry is adapting to growing calls for emission reduction, see January 21, 2022, article - 2022 Market Outlook: U.S., Canada to Benefit from Global Adoption of Carbon-Reduction Technology.
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.
