09-07-2015

Enterprise expands its petrochemicals pipeline network

Enterprise Products Partners L.P. today announced a series of projects to convert and expand segments of its petrochemicals pipeline network designed to increase throughput capacity for polymer grade propylene  and enhance system flexibility and reliability.

• North Dean pipeline conversion and expansion – The 149-mile pipeline will be converted from refinery grade propylene service to PGP service. The conversion is scheduled for completion in January, 2017. Originating at Enterprise’s Mont Belvieu, Texas complex, the converted pipeline will serve petrochemical facilities as far south as Seadrift, Texas in Calhoun County. Construction of a 33-mile lateral pipeline, new metering stations and additional pumping capacity will accommodate the additional volumes and increase total PGP delivery capacity to more than 150,000 barrels per day.

• Lou-Tex propylene pipeline conversion – The 263-mile, bi-directional pipeline, which currently transports chemical grade propylene (“CGP”) between Sorrento, Louisiana and Mont Belvieu, will be converted to PGP service. The conversion is scheduled for completion in 2020.

• RGP pipeline and rail terminal expansion – Construction of a new 65-mile, 10-inch diameter pipeline, which will transport RGP between Sorrento and Breaux Bridge, Louisiana, is scheduled for completion in early 2017. Rail receipt facilities at Mont Belvieu are also being expanded to give Enterprise the capability to unload up to 100 RGP rail cars per day.

“The expanded capability of our new South Texas petrochemical pipeline network will complement Enterprise’s growing propylene production capacity driven by our new propane dehydrogenation unit now under construction,” said A.J. “Jim” Teague, chief operating officer of Enterprise’s general partner. “When completed, our PGP distribution system will stretch 587 miles and allow us to serve more than 30 petrochemical facilities from South Texas to east of the Mississippi River from our Mont Belvieu complex. These projects will also support incremental capacity at our PGP marine export terminal in Seabrook, Texas. These conversion and expansion projects reflect our commitment to providing customers with the first and last mile connections between supplies and markets.”

Enterprise’s PGP infrastructure at Mont Belvieu currently consists of six propane/propylene fractionators. Following completion of the new PDH plant, which is scheduled for September of 2016, Enterprise will have the capability to produce 8 billion pounds of PGP at its Mont Belvieu complex. In addition, a portion of Enterprise’s salt dome storage capacity in Mont Belvieu is dedicated to PGP service.

RGP is a mixture of propane and propylene that is fractionated into PGP. PGP is used as a feedstock in the production of various consumer products, including packaging film, fibers for carpets and upholstery, and molded plastics parts for appliances and automotive, houseware and medical products.