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Released March 28, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. production of natural gas liquids (NGL) has significantly increased, averaging 4.3 million barrels per day (BBL/d) in 2018, up from 2.5 million BBL/d in 2012, according to the U.S. Energy Information Administration (EIA). The Permian, Eagle Ford, Marcellus and Utica regions are believed to have accounted for more than half of all U.S. NGL production last year. Industrial Info is tracking nearly $8.7 billion in active NGL projects in the U.S. Oil & Gas Industry that are set to begin construction in the second quarter.
Click on the image at right for a graph detailing NGL project kickoffs in the domestic Oil & Gas Industry from April through June, by industry sector.
Not surprisingly, the Texas Gulf Coast is the top destination for domestic NGL projects, accounting for more than 70% of the projected spending. At the forefront are two additions at Enterprise Products Partners LP's (NYSE:EPD) (Houston) NGL Fractionator Complex in Mont Belvieu: the $1.2 billion propane dehydrogenation (PDH) Unit 2, which is designed to produce 1.65 billion pounds per year of propylene from 35,000 BBL/d of propane, and the $500 million Train 11, which would have a capacity of 150,000 BBL/d.
Enterprise CEO James Teague recently said the added capacity at the company's Mont Belvieu facility is needed "to handle significantly more liquids from the Permian Basin and beyond." Train 11 is expected to increase the NGL fractionation capacity to 1.1 million BBL/d, while the PDH unit would bring the total propylene capacity to 3.3 billion pounds per year. For more information, see Industrial Info's reports on the PDH unit and Train 11.
Also in Mont Belvieu, Targa Resources Corporation (NYSE:TRGP) (Houston) is preparing to begin construction on the $413 million Train 7 and the $413 million Train 8 at its Cedar Bayou Fractionator Complex. Each unit is designed to produce 110,000 BBL/d of high-purity butane, propane, ethane and other liquids from feedstock. Williams Companies (NYSE:WMB) (Tulsa, Oklahoma) recently agreed to supply "significant volumes" to be fractionated at the complex; Targa also gave Williams an initial option to purchase a 20% equity interest in Train 7 or Train 8. For more information, see Industrial Info's project reports on Train 7 and Train 8.
Outside Texas, the Utica Shale is host to a smaller but nonetheless influential list of projects, one of the largest being Marathon Petroleum Corporation's (NYSE:MPC) (Findlay, Ohio) proposed, $200 million Train 5 at its Seneca Cryogenic Natural Gas Plant Complex in Summerfield, Ohio. The unit would add 200 million standard cubic feet per day capacity, bringing the complex to 1 billion cubic feet per day. For more information, see Industrial Info's project report.
The terminals and storage business plays a major role in next quarter's NGL projects, including American Ethane's (Houston) kickoff of a long-delayed, $1.2 billion ethane export terminal in Nederland, Texas, which would liquefy 8 million to 10 million tons per year of ethane for export, mostly to ethylene cracker projects in China. The terminal will include four 120,000-BBL/d trains, an 800,000-barrel liquid ethane storage tank, and a pair of docks. For more information, see Industrial Info's project report.
Two other high-profile liquefied natural gas (LNG) export terminals are adding natural gas pretreatment units: Venture Global LNG Incorporated's (Arlington, Virginia) $50 million addition at Calcasieu Pass in Cameron, Louisiana, which would process 1.35 billion cubic feet per day, and Qatar Petroleum's (Doha, Qatar) $50 million addition at Golden Pass in Sabine Pass, Texas, which would process 2.1 billion cubic feet per day. For more information, see Industrial Info's reports on the Calcasieu Pass and Sabine Pass projects.
On the midstream front, Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands) subsidiary Shell Midstream Partners LP is preparing to begin construction on its Falcon Pipeline System, which will transport up to 107,000 BBL/d of ethane 97 miles from the Marcellus and Utica plays to Shell's petrochemical facility under construction in Monaca, Pennsylvania. It includes a $100 million Ohio segment, $90 million Pennsylvania segment and $15 million West Virginia segment.
The Port of Philadelphia recently announced that nearly 11,000 pipeline segments for Falcon, totaling 97 miles in length, had arrived at the Tioga Marine Terminal in February. Minnesota Limited LLC (Big Lake, Minnesota) recently was awarded the installation contract. For more information, see Industrial Info's reports on the Ohio, West Virginia and Pennsylvania segments.
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. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Not surprisingly, the Texas Gulf Coast is the top destination for domestic NGL projects, accounting for more than 70% of the projected spending. At the forefront are two additions at Enterprise Products Partners LP's (NYSE:EPD) (Houston) NGL Fractionator Complex in Mont Belvieu: the $1.2 billion propane dehydrogenation (PDH) Unit 2, which is designed to produce 1.65 billion pounds per year of propylene from 35,000 BBL/d of propane, and the $500 million Train 11, which would have a capacity of 150,000 BBL/d.
Enterprise CEO James Teague recently said the added capacity at the company's Mont Belvieu facility is needed "to handle significantly more liquids from the Permian Basin and beyond." Train 11 is expected to increase the NGL fractionation capacity to 1.1 million BBL/d, while the PDH unit would bring the total propylene capacity to 3.3 billion pounds per year. For more information, see Industrial Info's reports on the PDH unit and Train 11.
Also in Mont Belvieu, Targa Resources Corporation (NYSE:TRGP) (Houston) is preparing to begin construction on the $413 million Train 7 and the $413 million Train 8 at its Cedar Bayou Fractionator Complex. Each unit is designed to produce 110,000 BBL/d of high-purity butane, propane, ethane and other liquids from feedstock. Williams Companies (NYSE:WMB) (Tulsa, Oklahoma) recently agreed to supply "significant volumes" to be fractionated at the complex; Targa also gave Williams an initial option to purchase a 20% equity interest in Train 7 or Train 8. For more information, see Industrial Info's project reports on Train 7 and Train 8.
Outside Texas, the Utica Shale is host to a smaller but nonetheless influential list of projects, one of the largest being Marathon Petroleum Corporation's (NYSE:MPC) (Findlay, Ohio) proposed, $200 million Train 5 at its Seneca Cryogenic Natural Gas Plant Complex in Summerfield, Ohio. The unit would add 200 million standard cubic feet per day capacity, bringing the complex to 1 billion cubic feet per day. For more information, see Industrial Info's project report.
The terminals and storage business plays a major role in next quarter's NGL projects, including American Ethane's (Houston) kickoff of a long-delayed, $1.2 billion ethane export terminal in Nederland, Texas, which would liquefy 8 million to 10 million tons per year of ethane for export, mostly to ethylene cracker projects in China. The terminal will include four 120,000-BBL/d trains, an 800,000-barrel liquid ethane storage tank, and a pair of docks. For more information, see Industrial Info's project report.
Two other high-profile liquefied natural gas (LNG) export terminals are adding natural gas pretreatment units: Venture Global LNG Incorporated's (Arlington, Virginia) $50 million addition at Calcasieu Pass in Cameron, Louisiana, which would process 1.35 billion cubic feet per day, and Qatar Petroleum's (Doha, Qatar) $50 million addition at Golden Pass in Sabine Pass, Texas, which would process 2.1 billion cubic feet per day. For more information, see Industrial Info's reports on the Calcasieu Pass and Sabine Pass projects.
On the midstream front, Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands) subsidiary Shell Midstream Partners LP is preparing to begin construction on its Falcon Pipeline System, which will transport up to 107,000 BBL/d of ethane 97 miles from the Marcellus and Utica plays to Shell's petrochemical facility under construction in Monaca, Pennsylvania. It includes a $100 million Ohio segment, $90 million Pennsylvania segment and $15 million West Virginia segment.
The Port of Philadelphia recently announced that nearly 11,000 pipeline segments for Falcon, totaling 97 miles in length, had arrived at the Tioga Marine Terminal in February. Minnesota Limited LLC (Big Lake, Minnesota) recently was awarded the installation contract. For more information, see Industrial Info's reports on the Ohio, West Virginia and Pennsylvania segments.
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. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.