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Researched by Industrial Info Resources (Sugar Land, Texas)--Thanks to the increasing production of crude oil and natural gas from the Permian Basin and other areas, U.S. midstream companies are thriving. Among these is Enterprise Products Partners LP (NYSE:EPD) (Houston, Texas), which has recently wrapped up several major growth projects and continues to expand with $7.7 billion of projects under construction. Enterprise posted record full-year net income in 2019 of $4.6 billion, compared with $4.2 billion in 2018.
In the company's recent earnings conference call, Chief Executive Officer Jim Teague discussed Enterprise's project activity. "During 2019, Enterprise completed construction and began service on approximately $5.4 billion of capital projects, including $2.5 billion that were completed in the fourth quarter. In addition, we have another $7.7 billion in projects underway," said Teague.
Among the company's largest projects completed in the just-passed quarter was its isobutane dehydrogenation unit in Mont Belvieu, Texas. Construction on the unit began in early 2018 and was completed in December 2019. The unit has a production capacity of 425,000 metric tons per year of isobutylene. Optimized Process Designs (Katy, Texas) provided engineering, procurement and construction on the project, which had an estimated total investment value of $1 billion. For more information, see Industrial Info's project report.
But Enterprise isn't done with its expansion of the Mont Belvieu complex. Construction recently kicked off on a second propane dehydrogenation (PDH) unit, which will have a capacity of 1.65 billion pounds per year of propylene. Teague said, "PDH 2 is underway [with] construction. We have a high-quality petrochemical customer as the anchor and are in negotiations for the remaining capacity and potentially a joint-venture partner. ... Once PDH 2 is up, we will produce more than 11 billion pounds a year of propylene." For more information, see Industrial Info's project report.
Also at Mont Belvieu, construction on three natural gas liquids (NGL) fractionators is underway. Frac 10 is on track to be completed this quarter, while Frac 11 should start up in the third quarter. Each fractionator will add 150,000 barrels per day (BBL/d) of fractionation capacity, increasing the facility's total NGL fractionation capacity to 1.1 million barrels per day. Construction on Frac 12 began last summer and is expected to be completed in early 2021. It also will add 150,000 BBL/d of fractionation capacity. For more information, see Industrial Info's project reports on Frac 10, Frac 11 and Frac 12.
In addition to its process and fractionation capacity, Enterprise also is growing its pipeline network in the Permian Basin. Teague said, "In the first half of next year, we expect to have four crude oil pipelines out of the Permian." Among these is the Midland-to-Echo III (M2E3) crude oil pipeline, a 502-mile, 30-inch-diameter pipeline that will provide 400,000-450,000 BBL/d of crude oil takeaway capacity from Enterprise's terminal in Midland, Texas, to a terminal near Houston. Construction is expected to begin soon and be completed in the summer of 2021. For more information, see Industrial Info's project report.
Among Enterprise largest planned projects is the Sea Port Oil Terminal (SPOT), an offshore export terminal located in the Texas Gulf of Mexico, about 30 miles south of Brazoria County. The terminal would be capable of serving Very Large Crude Carriers (VLCCs), capable of transporting 2 million barrels of oil. The project still needs to be approved by federal regulators. In December, Enterprise signed an agreement with Canadian pipeline operator Enbridge Incorporated (NYSE:ENB) (Calgary, Alberta) in which Enbridge will be able to buy an ownership stake in the project. Construction could begin later this year, taking more than two years to complete. For more information, see Industrial Info's project report.
To help accommodate the increased export of U.S. crude oil and other hydrocarbons, Enterprise plans to soon begin the expansion of its export terminal on the Houston Ship Channel. The $90 million project entails constructing a dock able to accommodate Suezmax vessels, capable of loading approximately 840,000 barrels of oil. The project is expected to be completed by the end of this year. For more information, see Industrial Info's project report.
In 2020, Enterprise estimates its growth capital expenditures will be in the range of $3 billion to $4 billion, with sustaining capital expenditures of approximately $400 million.
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.
In the company's recent earnings conference call, Chief Executive Officer Jim Teague discussed Enterprise's project activity. "During 2019, Enterprise completed construction and began service on approximately $5.4 billion of capital projects, including $2.5 billion that were completed in the fourth quarter. In addition, we have another $7.7 billion in projects underway," said Teague.
Among the company's largest projects completed in the just-passed quarter was its isobutane dehydrogenation unit in Mont Belvieu, Texas. Construction on the unit began in early 2018 and was completed in December 2019. The unit has a production capacity of 425,000 metric tons per year of isobutylene. Optimized Process Designs (Katy, Texas) provided engineering, procurement and construction on the project, which had an estimated total investment value of $1 billion. For more information, see Industrial Info's project report.
But Enterprise isn't done with its expansion of the Mont Belvieu complex. Construction recently kicked off on a second propane dehydrogenation (PDH) unit, which will have a capacity of 1.65 billion pounds per year of propylene. Teague said, "PDH 2 is underway [with] construction. We have a high-quality petrochemical customer as the anchor and are in negotiations for the remaining capacity and potentially a joint-venture partner. ... Once PDH 2 is up, we will produce more than 11 billion pounds a year of propylene." For more information, see Industrial Info's project report.
Also at Mont Belvieu, construction on three natural gas liquids (NGL) fractionators is underway. Frac 10 is on track to be completed this quarter, while Frac 11 should start up in the third quarter. Each fractionator will add 150,000 barrels per day (BBL/d) of fractionation capacity, increasing the facility's total NGL fractionation capacity to 1.1 million barrels per day. Construction on Frac 12 began last summer and is expected to be completed in early 2021. It also will add 150,000 BBL/d of fractionation capacity. For more information, see Industrial Info's project reports on Frac 10, Frac 11 and Frac 12.
In addition to its process and fractionation capacity, Enterprise also is growing its pipeline network in the Permian Basin. Teague said, "In the first half of next year, we expect to have four crude oil pipelines out of the Permian." Among these is the Midland-to-Echo III (M2E3) crude oil pipeline, a 502-mile, 30-inch-diameter pipeline that will provide 400,000-450,000 BBL/d of crude oil takeaway capacity from Enterprise's terminal in Midland, Texas, to a terminal near Houston. Construction is expected to begin soon and be completed in the summer of 2021. For more information, see Industrial Info's project report.
Among Enterprise largest planned projects is the Sea Port Oil Terminal (SPOT), an offshore export terminal located in the Texas Gulf of Mexico, about 30 miles south of Brazoria County. The terminal would be capable of serving Very Large Crude Carriers (VLCCs), capable of transporting 2 million barrels of oil. The project still needs to be approved by federal regulators. In December, Enterprise signed an agreement with Canadian pipeline operator Enbridge Incorporated (NYSE:ENB) (Calgary, Alberta) in which Enbridge will be able to buy an ownership stake in the project. Construction could begin later this year, taking more than two years to complete. For more information, see Industrial Info's project report.
To help accommodate the increased export of U.S. crude oil and other hydrocarbons, Enterprise plans to soon begin the expansion of its export terminal on the Houston Ship Channel. The $90 million project entails constructing a dock able to accommodate Suezmax vessels, capable of loading approximately 840,000 barrels of oil. The project is expected to be completed by the end of this year. For more information, see Industrial Info's project report.
In 2020, Enterprise estimates its growth capital expenditures will be in the range of $3 billion to $4 billion, with sustaining capital expenditures of approximately $400 million.
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.
