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Enterprise to build world largest ethane export terminal on US Gulf

Enterprise selects Mont Belvieu for its ethane terminal

2B1st_Project_Smart_Explorer_Sales_Pursuit_ToolThe natural gas liquids (NGL) midstream US specialist Enterprise Products Partners LP (Enterprise or EPP)  has decided to build a giant ethane export terminal in its hub of Mont Belvieu, on the Texas Gulf Coast in USA.

These last months, Enterprise multiplied the projects announcements of greenfield projects and expansion of existing facilities along the US Gulf Coast in Louisiana and Texas.

The over production of the shale gas in the US had the consequence to affect the price of the natural gas on the domestic market.

The exportation of this gas through the twentieth liquefied natural gas (LNG) projects queuing for approvals is and will remain very limited causing this gas production to be flared or sold at low prices still while along.

Enterprise_Products_Partners_US_Gulf_Coast_Ethane_Export_Terminal_mapInstead, the condensate associated to this natural gas have a solid market value on the domestic market and can be easily exported from the US from regulation perspective.

This historical opportunity, born from the global market conditions and the local regulation in USA about NGL, has been well identified by the midstream giant Enterprise with the consequence to invest in a cascade or projects for transportation, separation, storage and export of NGL.

This series started with a propane dehydrogenation (PDH) plant in construction at Enterprise existing Mont Belvieu facilities.

For this PDH plant, Enterprise just signed an agreement with Air Products to build, own and operate an hydrogen plant adjacent to the PDH facility.

With the off-gas supplied from Enterprise, Air Products will produce 40 million cubic feet per day (cf/d) of hydrogen by 2015

Enterprise continues with the Houston Ship Channel Expansion project and a new terminal for liquefied petroleum gas (LPG) to be built in Louisiana or Texas.

Enterprise Ethane Export Terminal ready by end 2016

With these projects Enterprise will double its production capacity of LPG to 15 million barrels per month (b/m) by 2015.

In this logic, Enterprise is willing to build the world largest ethane export terminal to optimize the monetization of all the shale gas by-products.

Enterprise_Products_Partners_US_Gulf_Coast_Ethane_Export_Terminal_ProjectEthane is the primary source of olefins and polyolefins production in beginning with the ethylene.

With the development of the petrochemical industry all over the world, the demand for ethylene is solid enough to sustain the ethane prices as the preferred feedstock.

To be integrated in the existing Mont Belvieu facility, this ethane export terminal should have an offloading capacity of 240,000 barrels per day (b/d).

This capacity is to be compared with the ethane over production currently estimated in the USA to 300,000 b/d.

Despite the dozen of ethylene crackers projects in the pipeline, Enterprise estimates the ethane production surplus to bubble to 700,000 b/d by 2020.

In this perspective Enterprise is boosting all export capacities for LPG and LNG including with this Mont Belvieu Ethane Export Terminal project expected to offload the first shipments by the end of 2016.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer2B1st_Project_Smart_Explorer_Sales_Pursuit_Tool


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