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Released August 01, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--In a long list of active projects with a combined estimated total investment value (TIV) of more than $15 billion, Enterprise Products Partners LP (NYSE:EPD) (Houston, Texas) this week made a positive final investment decision on one of its largest: a planned offshore crude oil export terminal along the Texas Gulf Coast. The decision to invest in the terminal, known as the Sea Port Oil Terminal (SPOT) comes after the company finalized contracts with Chevron Corporation (NYSE:CVX) (San Ramon, California) to use Enterprise's pipelines to move crude oil from the Permian Basin to Enterprise's ECHO terminal near Houston and to support the development of SPOT.
Federal approval is still needed for the terminal, but construction could begin next year, with completion in 2022. The terminal would be capable of loading very large crude carriers (VLCCs), which can transport up to 2 million barrels. For more information, see Industrial Info's project report.
In the company's second-quarter 2019 earnings conference call, Enterprise Chief Executive Officer Jim Teague discussed the U.S' growing energy production and Enterprise's role in the burgeoning export market. He said, "Excess of supply is the key to viable U.S. export facilities, and given our supply position in both NGLs [natural gas liquids] and crude, and our early focus on exports, we are a player in this area. Virtually every incremental barrel is headed for export, thus as we build pipelines and fractionators, you can expect export expansions from Enterprise." Teague said that Enterprise projected U.S. crude oil exports would increase from approximately 3 million barrels per day (BBL/d) today to more than 8 million BBL/d in the next few years as shale production continues to increase.
Teague said Enterprise provides about 50% of the NGLs exported from U.S., roughly one-third of exported crude oil and "the lion's share" of propylene. Enterprise's list of active projects shows that it is intent on growing these numbers. The company brought into service $900 million of major growth projects in the just-passed quarter and is on schedule to complete $3.2 billion of projects in the second half of this year, according to Teague.
Among the projects that wrapped up in the second quarter was the addition of a third natural gas processing train in Orla, Texas. Construction began mid-2018, with Optimized Process Designs LLC (Katy, Texas) providing engineering, procurement and construction (EPC). The facility will process 330 million cubic feet per day of natural gas and 40,000 BBL/d of NGLs, bringing total plant capacity to 990 million cubic feet per day and 120,000 BBL/d, respectively. For more information, see Industrial Info's project report.
The list of underway Enterprise projects listed by Teague is impressive and covers a variety of midstream segments including pipelines, natural gas processing, terminals and propane dehydrogenation. Among Enterprise's export-oriented projects are the expansions of an ethylene and NGL export terminal in La Porte, Texas, and a dock expansion at a hydrocarbons export terminal on the Houston Ship Channel. Construction on the ethylene terminal began in mid-2018, with PCL Industrial Construction Company (Katy) and Black & Veatch Incorporated (Overland Park, Kansas) providing EPC. The facility will have a loading capacity of 1,000 tons per hour and refrigerated storage capacity of 30,000 tons. Construction on the $750 million project is expected to wrap up in fourth-quarter 2019. For more information, see Industrial Info's project report.
The expansion project at Enterprise's existing terminal on the Houston Ship Channel includes constructing a dock with the capability of loading approximately 840,000 BBL/d of crude oil, increasing capacity to 2.75 million BBL/d. Construction is expected to begin later this year, with completion set for the end of 2020. For more information, see Industrial Info's project report.
To accommodate the growing NGL export market, Enterprise is underway with construction of an 11th fractionator at is complex in Mont Belvieu, Texas, and will soon begin work on a 12th. Each fractionator will add 150,000 BBL/d of production capacity and will increase the plant's total capacity to 1.25 million BBL/d. Construction of the 11th fractionator is expected to be completed in about a year; construction of the 12th fractionator in early 2021. S&B Engineers and Constructors Limited (Houston) is providing EPC for both fractionators. For more information, see Industrial Info's project reports on the Fractionator 11 and Fractionator 12.
Among Enterprise's largest planned projects is the addition of a propane dehydrogenation (PDH) unit in Mont Belvieu. The unit will use 35,000 BBL/d of propane as feedstock and will double the facility's capacity to 3.3 billion pounds per year. Construction is set to begin this quarter and will take about three years to complete. The project has an estimated TIV of $1.2 billion. For more information, see Industrial Info's project report.
Among Enterprise's largest underway pipeline projects is the construction of an NGL pipeline from the Permian Basin to its Mont Belvieu complex. The project has multiple contractors over eight spreads. The Shin Oak Pipeline will transport 550,000 BBL/d and will be expandable to 600,000 BBL/d. Construction began late last year and is expected to be completed in the fourth quarter of this year. For more information, see Industrial Info's project report. Altus Midstream Company (NASDAQ:ALTM) (Houston) this week acquired a 33% equity interest in the Enterprise subsidiary that owns the pipeline.
Enterprise reported second-quarter net income of $1.2 billion, compared with $674 million in the year-prior quarter. The company had capital spending of $1.2 billion in the second quarter and expects capital spending in 2019 to be about $4 billion.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, eight 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.
Federal approval is still needed for the terminal, but construction could begin next year, with completion in 2022. The terminal would be capable of loading very large crude carriers (VLCCs), which can transport up to 2 million barrels. For more information, see Industrial Info's project report.
In the company's second-quarter 2019 earnings conference call, Enterprise Chief Executive Officer Jim Teague discussed the U.S' growing energy production and Enterprise's role in the burgeoning export market. He said, "Excess of supply is the key to viable U.S. export facilities, and given our supply position in both NGLs [natural gas liquids] and crude, and our early focus on exports, we are a player in this area. Virtually every incremental barrel is headed for export, thus as we build pipelines and fractionators, you can expect export expansions from Enterprise." Teague said that Enterprise projected U.S. crude oil exports would increase from approximately 3 million barrels per day (BBL/d) today to more than 8 million BBL/d in the next few years as shale production continues to increase.
Teague said Enterprise provides about 50% of the NGLs exported from U.S., roughly one-third of exported crude oil and "the lion's share" of propylene. Enterprise's list of active projects shows that it is intent on growing these numbers. The company brought into service $900 million of major growth projects in the just-passed quarter and is on schedule to complete $3.2 billion of projects in the second half of this year, according to Teague.
Among the projects that wrapped up in the second quarter was the addition of a third natural gas processing train in Orla, Texas. Construction began mid-2018, with Optimized Process Designs LLC (Katy, Texas) providing engineering, procurement and construction (EPC). The facility will process 330 million cubic feet per day of natural gas and 40,000 BBL/d of NGLs, bringing total plant capacity to 990 million cubic feet per day and 120,000 BBL/d, respectively. For more information, see Industrial Info's project report.
The list of underway Enterprise projects listed by Teague is impressive and covers a variety of midstream segments including pipelines, natural gas processing, terminals and propane dehydrogenation. Among Enterprise's export-oriented projects are the expansions of an ethylene and NGL export terminal in La Porte, Texas, and a dock expansion at a hydrocarbons export terminal on the Houston Ship Channel. Construction on the ethylene terminal began in mid-2018, with PCL Industrial Construction Company (Katy) and Black & Veatch Incorporated (Overland Park, Kansas) providing EPC. The facility will have a loading capacity of 1,000 tons per hour and refrigerated storage capacity of 30,000 tons. Construction on the $750 million project is expected to wrap up in fourth-quarter 2019. For more information, see Industrial Info's project report.
The expansion project at Enterprise's existing terminal on the Houston Ship Channel includes constructing a dock with the capability of loading approximately 840,000 BBL/d of crude oil, increasing capacity to 2.75 million BBL/d. Construction is expected to begin later this year, with completion set for the end of 2020. For more information, see Industrial Info's project report.
To accommodate the growing NGL export market, Enterprise is underway with construction of an 11th fractionator at is complex in Mont Belvieu, Texas, and will soon begin work on a 12th. Each fractionator will add 150,000 BBL/d of production capacity and will increase the plant's total capacity to 1.25 million BBL/d. Construction of the 11th fractionator is expected to be completed in about a year; construction of the 12th fractionator in early 2021. S&B Engineers and Constructors Limited (Houston) is providing EPC for both fractionators. For more information, see Industrial Info's project reports on the Fractionator 11 and Fractionator 12.
Among Enterprise's largest planned projects is the addition of a propane dehydrogenation (PDH) unit in Mont Belvieu. The unit will use 35,000 BBL/d of propane as feedstock and will double the facility's capacity to 3.3 billion pounds per year. Construction is set to begin this quarter and will take about three years to complete. The project has an estimated TIV of $1.2 billion. For more information, see Industrial Info's project report.
Among Enterprise's largest underway pipeline projects is the construction of an NGL pipeline from the Permian Basin to its Mont Belvieu complex. The project has multiple contractors over eight spreads. The Shin Oak Pipeline will transport 550,000 BBL/d and will be expandable to 600,000 BBL/d. Construction began late last year and is expected to be completed in the fourth quarter of this year. For more information, see Industrial Info's project report. Altus Midstream Company (NASDAQ:ALTM) (Houston) this week acquired a 33% equity interest in the Enterprise subsidiary that owns the pipeline.
Enterprise reported second-quarter net income of $1.2 billion, compared with $674 million in the year-prior quarter. The company had capital spending of $1.2 billion in the second quarter and expects capital spending in 2019 to be about $4 billion.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, eight 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.
