Enterprise Touts Marine Terminal Shipments, Defends Houston Ship Channel

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Researched by Industrial Info Resources (Sugar Land, Texas)--Enterprise Products Partners LP (NYSE:EPD) (Houston, Texas) said Wednesday that exports and imports of hydrocarbons across its marine terminals totaled a record 146 million barrels on a gross basis in first-quarter 2017. Natural gas liquids (NGL), crude oil, condensate, refined products and petrochemicals accounted for 62% of the volume, the company said.

Enterprise noted it operates 18 deepwater docks along the Texas Gulf Coast. Industrial Info is tracking active Enterprise projects in Texas worth $3.84 billion.

The previous record was set in second-quarter 2016 at 136 million barrels of hydrocarbons, Enterprise said in a press statement. First-quarter 2017 gross NGL and crude oil marine terminal volumes increase by 25% and 9%, respectively, compared with first-quarter 2016, Enterprise added.

"Our Enterprise Hydrocarbons Terminal on the Houston Ship Channel, the largest of our marine terminals, accounted for approximately 60%, or almost 922,000 barrels per day, of total volumes handled in the first quarter of 2017," said Jim Teague, chief executive officer of Enterprise's general partner. He added, "With our recent investments in dock expansions, this facility has the capacity to handle up to 2.0 million barrels per day, depending on the mix of hydrocarbon cargoes and imports versus exports."

In January, Teague noted Enterprise completed $2.2 billion of projects, including an ethane export terminal on the Houston Ship Channel. For related information, see January 31, 2017, article - Enterprise Products CEO: 'Worst Part of the Cycle Is Behind Us'.

In the U.S., Industrial Info is tracking about $10 billion of terminals projects scheduled to kick off in 2017 and 2018. For related information, see March 2, 2017, article - North American Oil & Gas Terminals Buildout Expected to Quicken in 2017.

Houston Ship Channel Gets Bad Rap
Teague said the Houston Ship Channel recently "has been a victim of erroneous claims of growing congestion. Large vessel traffic on the waterway has essentially been flat since 2012."

According to a March 29 article by Platts' THE BARREL, shipbrokers say the channel already is clogged as tankers maneuver for available berths, and new chemical production will make the channel even more congested.

Teague maintained the channel can still handle much more deep draft traffic. Average daily movements are less than 60% of its peak single-day record, he said, citing the Greater Houston Port Bureau. Teague added: "When it comes to access to onshore storage facilities, vessel traffic service, two-way traffic, max draft, beam and air draft dimensions, number of pilots and the lack of military and offshore platform limitations, our experience tells us the Houston Ship Channel is the crown jewel of ports on the Texas Gulf Coast."

Industrial Info is tracking 139 active projects worth a combined $28.9 billion that involve the Houston Ship Channel in Harris and Galveston counties. This includes NextDecade's (The Woodlands, Texas) proposed $6 billion Shoal Point Pelican Island LNG Production Plant in Texas City. Still in the early stages of development, it would include two trains each producing 4.5 million metric tons per year of liquefied natural gas. LNG for a total of 9 million metric tons per year. Construction would not kick off until at least 2021, with completion in 2025. For more information, see Industrial Info's project report and January 26, 2017, article - NextDecade Plans Rio Grande LNG's Construction, Seeks New Site for 2nd Project.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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/.