Enterprise Products Partners said Wednesday that it will build a second liquefied petroleum gas export terminal on the Gulf Coast.
The facility will be able to handle ships known as very large gas carriers. The initial loading rate for export-grade propane or butane service is expected to be approximately 11,000 barrels per hour, which would equal about 6 million to 6.5 million barrels per month.
Enterprise is studying potential locations in Louisiana and Texas. The partnership expects the marine terminal to be running in the fourth quarter of 2015.
Enterprise recently announced an expansion for its existing LPG export terminal on the Houston Ship Channel. When both projects are done, Enterprise will have the total capacity to load about 15 million to 16 million barrels per month of low-ethane propane and/or butane at its LPG marine terminals.
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Each terminal will have separate, dedicated pipelines that supply LPG from the partnership’s large fractionation and storage complex in Mont Belvieu. The complex includes over 100 million barrels of salt dome storage capacity and, with the completion of the eighth fractionator in the fourth quarter of 2013, more than 650,000 barrels per day of natural gas liquids fractionation capacity.
“The development of the new terminal was driven by continued demand from our international customers for additional supply of propane and butane,” Michael Creel, CEO of Enterprise’s general partner, said in a statement. “ These facilities are supported by over 25 customers and associated long-term contracts, some of which extend into 2024. Just as with our other LPG export projects, we expect that the terminal will be operating at or near its capacity upon startup.”
Enterprise Products Partners, one of the largest publicly traded partnerships, provides midstream energy services to producers and consumers of natural gas, natural gas liquids, crude oil, refined products and petrochemicals.