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Released February 01, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--With record production of oil, natural gas and natural gas liquids (NGLs) occurring in the U.S., it's a good time to be a midstream operator and gas processor. Enterprise Products Partners LP (NYSE:EPD) (Houston, Texas) provides a good example of this. The company boosted full-year 2018 net income to $4.17 billion from $2.8 billion in 2017. Accompanying this is a large undertaking of capital projects. The company reports that it has $6.7 billion of projects under construction and expects 2019 capital expenditures to be between $3.5 billion and $3.9 billion.
In Enterprise's fourth-quarter earnings conference call, Chief Executive Officer Jim Teague spoke about some of the company's projects. "We continue building assets in the Permian," said Teague. "We've already committed more than $6 billion of capital to projects in the Permian. Our Permian asset base now includes natural gas processing and related gathering; NGL, natural gas and crude oil takeaway; and additional crude oil segregation and storage. We're also building two additional NGL fractionators in Mont Belvieu [Texas] and expanding our LPG [liquefied petroleum gas] capabilities in order to handle significantly more liquids from the Permian Basin and beyond. Our Permian natural gas processing now includes three plants at our Orla complex and our recently announced Mentone gas plant. Two of the three Orla plants were put into service in 2018, with the third scheduled to begin service in the second quarter of 2019."
Construction on the third Orla gas processing train began in the first half of 2018, with Optimized Process Designs LLC (Katy, Texas) providing engineering, procurement and construction (EPC). The train will process 330 million cubic feet per day of natural gas and 40,000 barrels per day (BBL/d) of NGLs, bringing total plant capacity to 990 million cubic feet per day of natural gas and 120,000 BBL/d of NGLs. For more information, see Industrial Info's project report.
"The nearby Mentone plant is scheduled to come online in the first quarter of 2020," said Teague. Construction on the Mentone plant began earlier this year, with Optimized Process Design providing EPC. The train will have the same processing specifications as the Orla train. The project has an estimated total investment value (TIV) of $150 million. For more information, see Industrial Info's project report.
Teague said, "Upon the completion of these facilities, we will have over 1.5 billion cubic feet per day (Bcf/d) of natural gas processing capacity and over 250,000 BBL/d of liquids production in the Permian. The NGLs are pointed toward Enterprise Products' collection of west-to-east NGL pipelines, which will soon include our Shin Oak Pipeline, scheduled for completion in the second quarter of this year."
The Shin Oak Pipeline will run 571 miles and will carry 550,000 BBL/d (expandable to 600,000 BBL/d) of NGLs from the Permian to Enterprise's Mont Belvieu fractionation complex. Construction began late last year. The project has an estimated TIV of $950 million. For more information, see Industrial Info's project report. Teague said, "In addition to NGLs from our plants, Shin Oak is contracted for over 200,000 BBL/d of capacity to Apache (NYSE:APA), who has committed all of their NGL production from their Alpine High [site] in the Delaware Basin to Enterprise."
Enterprise also is in the permitting for an offshore crude oil export terminal that would be able load Very Large Crude Carriers (VLCCs), which have a capacity of 2 million barrels. Teague said, "Once completed, we expect to be able to load a tanker at 85,000 barrels per hour, giving us the capability to load 2 million-barrel VLCCs in 24 hours." Construction on the terminal could begin later this year, with completion in early 2020. The terminal would be located approximately 80 miles offshore from the Houston Ship Channel entryway. For more information, see Industrial Info's project report.
In addition to gas fractionation at its Mont Belvieu complex, Enterprise also plans to construct another propane dehydrogenation (PDG) unit and iso-butane dehydrogenation (IBDH) unit there. Teague said, "In addition to the world-scale PDH put into commercial service last April, which converts propane into polymer-grade propylene, we are working with several parties on an additional PDH in Mont Belvieu. ... Construction is underway at our IBDH facility, which should be completed in the fourth quarter of this year. ... We expect to continue to develop and grow our petrochemical midstream services."
Construction on the PDH unit could begin this year, with completion in 2023. The facility would be the same as the operational unit, creating 1.65 billion pounds per year of propylene utilizing 35,000 BBL/d of propane as feedstock. The project has an estimated TIV of $900 million. For more information, see Industrial Info's project report.
Construction on the IBDH unit began about a year ago, with Optimized Process Designs providing EPC and Honeywell UOP Russell LLC (Tulsa, Oklahoma) providing technology. The facility will produce 425,000 metric tons per year of isobutylene. For more information, see Industrial Info's 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. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
In Enterprise's fourth-quarter earnings conference call, Chief Executive Officer Jim Teague spoke about some of the company's projects. "We continue building assets in the Permian," said Teague. "We've already committed more than $6 billion of capital to projects in the Permian. Our Permian asset base now includes natural gas processing and related gathering; NGL, natural gas and crude oil takeaway; and additional crude oil segregation and storage. We're also building two additional NGL fractionators in Mont Belvieu [Texas] and expanding our LPG [liquefied petroleum gas] capabilities in order to handle significantly more liquids from the Permian Basin and beyond. Our Permian natural gas processing now includes three plants at our Orla complex and our recently announced Mentone gas plant. Two of the three Orla plants were put into service in 2018, with the third scheduled to begin service in the second quarter of 2019."
Construction on the third Orla gas processing train began in the first half of 2018, with Optimized Process Designs LLC (Katy, Texas) providing engineering, procurement and construction (EPC). The train will process 330 million cubic feet per day of natural gas and 40,000 barrels per day (BBL/d) of NGLs, bringing total plant capacity to 990 million cubic feet per day of natural gas and 120,000 BBL/d of NGLs. For more information, see Industrial Info's project report.
"The nearby Mentone plant is scheduled to come online in the first quarter of 2020," said Teague. Construction on the Mentone plant began earlier this year, with Optimized Process Design providing EPC. The train will have the same processing specifications as the Orla train. The project has an estimated total investment value (TIV) of $150 million. For more information, see Industrial Info's project report.
Teague said, "Upon the completion of these facilities, we will have over 1.5 billion cubic feet per day (Bcf/d) of natural gas processing capacity and over 250,000 BBL/d of liquids production in the Permian. The NGLs are pointed toward Enterprise Products' collection of west-to-east NGL pipelines, which will soon include our Shin Oak Pipeline, scheduled for completion in the second quarter of this year."
The Shin Oak Pipeline will run 571 miles and will carry 550,000 BBL/d (expandable to 600,000 BBL/d) of NGLs from the Permian to Enterprise's Mont Belvieu fractionation complex. Construction began late last year. The project has an estimated TIV of $950 million. For more information, see Industrial Info's project report. Teague said, "In addition to NGLs from our plants, Shin Oak is contracted for over 200,000 BBL/d of capacity to Apache (NYSE:APA), who has committed all of their NGL production from their Alpine High [site] in the Delaware Basin to Enterprise."
Enterprise also is in the permitting for an offshore crude oil export terminal that would be able load Very Large Crude Carriers (VLCCs), which have a capacity of 2 million barrels. Teague said, "Once completed, we expect to be able to load a tanker at 85,000 barrels per hour, giving us the capability to load 2 million-barrel VLCCs in 24 hours." Construction on the terminal could begin later this year, with completion in early 2020. The terminal would be located approximately 80 miles offshore from the Houston Ship Channel entryway. For more information, see Industrial Info's project report.
In addition to gas fractionation at its Mont Belvieu complex, Enterprise also plans to construct another propane dehydrogenation (PDG) unit and iso-butane dehydrogenation (IBDH) unit there. Teague said, "In addition to the world-scale PDH put into commercial service last April, which converts propane into polymer-grade propylene, we are working with several parties on an additional PDH in Mont Belvieu. ... Construction is underway at our IBDH facility, which should be completed in the fourth quarter of this year. ... We expect to continue to develop and grow our petrochemical midstream services."
Construction on the PDH unit could begin this year, with completion in 2023. The facility would be the same as the operational unit, creating 1.65 billion pounds per year of propylene utilizing 35,000 BBL/d of propane as feedstock. The project has an estimated TIV of $900 million. For more information, see Industrial Info's project report.
Construction on the IBDH unit began about a year ago, with Optimized Process Designs providing EPC and Honeywell UOP Russell LLC (Tulsa, Oklahoma) providing technology. The facility will produce 425,000 metric tons per year of isobutylene. For more information, see Industrial Info's 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. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
