30-05-2013

Enterprise to develop refined products export facilities on Texas Gulf Coast

Enterprise Products Partners L.P. today announced the partnership is developing two refined products export facilities to meet the growing demand for additional refined products export capability on the United States Gulf Coast. By utilizing Enterprise’s existing Southern Complex of refined products pipeline, storage and terminal facilities in southeast Texas, Enterprise will provide customers with significantly improved access to its marine facilities at its ports in Beaumont, Texas and on the Houston Ship Channel. Export service at the Beaumont marine terminal will initially handle Panamax size vessels and is expected to begin service in the first quarter of 2014, followed in mid-2014 by its expanded marine terminal on the Houston Ship Channel that will be initially sized to handle up to Aframax class vessels. 

Enterprise’s Southern Complex has traditionally served as a feeder system for the Enterprise TE Products Pipeline system, which delivers refined products to the Midwest. Over the past year, Enterprise has repurposed its Southern Complex in order to increase supply and market access, system flexibility and capacity. Storage capacity at the partnership’s Southern Complex facilities has more than doubled to approximately 12 million barrels; key pipeline segments serving major refining centers have been made bi-directional; and new interconnects provide access to major, third party interstate pipeline systems. The Southern Complex is directly connected for refined product receipts from the Colonial Pipeline and 10 refineries in southeast Texas, representing 3.3 million barrels per day of refining capacity. In addition, the Southern Complex offers access to three interstate pipelines and one intrastate pipeline. Enterprise’s Southern Complex provides its customers with enhanced flow assurance and market choices. 

“We are excited to announce our vertical integration into refined products export services,” said Michael A. Creel, chief executive officer of Enterprise’s general partner. “This expansion is driven by the tremendous growth of U.S. crude oil production from the development of the shale plays coupled with an increase in Gulf Coast refining production and strong international demand for U.S. refined products. In five short years, the United States has transitioned from importing approximately 1 million barrels per day (“MMBbls/d”) of refined products in 2007 to exporting more than 1 MMBbls/d in 2012, with most of these exports supplied by refineries on the Gulf Coast. I would like to congratulate our commercial, engineering and operations team for the development of this capital efficient plan to repurpose and expand existing facilities including the reactivation of our marine facility in Beaumont.”