Optimized Process Designs at Work on $3.5 Billion in Projects, Largely on U.S. Gulf Coast

Researched by Industrial Info Resources (Sugar Land, Texas)--With demand for U.S. natural gas increasing both domestically and internationally, service providers within the industry are finding plenty of business. Among them is Optimized Process Designs LLC (OPD) (Katy, Texas), which is involved in $3.5 billion worth of active projects, according to Industrial Info's project database. About 90% of that amount are nearing or under construction.

The U.S. Energy Information Administration (EIA) expects natural gas-fired power plants to supply 37% of U.S. generation this summer, just shy of the record-high natural gas-fired generation share in summer 2016.

Click on the image at right for a pair of EIA graphs detailing U.S. electricity generation by fuel type, from January 2014 through the projection for the end of this year.

OPD, a subsidiary of Koch Industries (Wichita, Kansas), is performing engineering, procurement and construction (EPC) services on several key natural gas liquid (NGL) facilities under construction along the Texas Gulf Coast. The largest is Enterprise Products Partners LP's (NYSE:EPD) (Houston, Texas) $1 billion addition of an isobutane dehydrogenation (IBDH) unit at its NGL fractionator complex in Mont Belvieu. The project, which would produce 425,000 metric tons per year of isobutylene, began site preparation in February and is expected to wrap up by the end of 2019. Isobutane is an NGL commonly used as a feedstock for petrochemicals or gasoline feedstocks, and the new plant in Mont Belvieu will produce a major ingredient for lubricants, rubber products and gasoline components.

At its nearby Cedar Bayou Fractionator Complex, Targa Resources Corporation (NYSE:TRGP) (Houston) is employing OPD for its $350 million NGL fractionator train addition in Mont Belvieu. The new unit will produce 100,000 BBL/d of high-purity butane, propane, ethane and other liquids from gas sourced from the Marcellus Shale. For more information, see Industrial Info's reports on the IBDH unit and NGL fractionator in Mont Belvieu.

To the south in Corpus Christi, Texas, OPD is at work on two fractionation projects: Southcross Energy Partners LP's (NYSE:SXE) (Arlington County, Virginia) $800 million NGL fractionation plant, which is expected to wrap up by the end of the year, and Permico Energia LLC's (Houston) $100 million NGL fractionator at its El Centro plant. Both projects would process 100,000 BBL/d of NGLs from the Permian Basin and Eagle Ford Shale, with feedstock provided via the EPIC NGL Pipeline. For more information, see Industrial Info's reports on the Southcross and Permico projects.

The 730-mile EPIC Pipeline, which carries crude oil from the Permian Basin to Corpus Christi, recently completed its second stage of construction, with 205 miles now built.

OPD also is at work on a pair of expansions at Enterprise's cryogenic natural gas-processing complex in West Texas: the $250 million Train 2 and $200 million Train 3. Each of the units (including the completed Train 1) can process 330 million standard cubic feet per day of natural gas and can extract more than 40,000 BBL/d of NGL. The first phase began service in May, while the second is expected to begin service in the fourth quarter, and the third in 2019. For more information, see Industrial Info's project reports on Train 2 and Train 3.

Farther north, OPD is at work on two natural gas-processing plants that are set to wrap up later this year: Stakeholder Midstream's (San Antonio, Texas) $200 million sour gas plant in Plains, Texas, and ONEOK Incorporated's (NYSE:OKE) (Tulsa, Oklahoma) $155 million cryogenic gas-processing plant expansion in Calumet, Oklahoma. The Stakeholder plant, which is positioned in the Permian Basin, is expected to process up to 60 million standard cubic feet per day, while the ONEOK project would double the Calumet facility's capacity of 400 million standard cubic feet per day. For more information, see Industrial Info's reports on the Stakeholder and ONEOK projects.

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/.