As propane supplies in the United States grow and export volumes continue to increase, Occidental Petroleum Corp. plans to construct a propane export facility in Ingleside, TX, on land it acquired last year.

Operation of the facility is expected to begin in January 2015. The project is contingent upon Occidental obtaining required contractual arrangements. “Occidental is also considering opportunities to export additional products from the facility, including butanes, natural gasoline and condensate,” the company said.

The company did not provide any details on the potential size of the facilities, cost or volumes to be exported.

The United States has been exporting increasing amounts of propane as supply of the natural gas liquid have flooded the domestic market. According to Energy Information Administration data, U.S. exports of propane and propylene totaled 279,000 b/d in April. In April 2010 exports were 93,000 b/d.

While domestic propane and butane production faces constraints at home, the commodities are increasingly attractive overseas, according to Scott Gray, editor of the Waterborne LPG Report, who spoke on the topic last April. The U.S. share of global LPG (propane and butane) supplies is expected to increase from 6% in 2011 to more than 15% by late this year, according to Gray (see Daily GPI, April 23).

Occidental has been in the process of expanding its land holdings at its Oxy Ingleside Energy Center (see Shale Daily, Oct. 11, 2012). Last summer, the Port of Corpus Christi accepted a $7 million bid from Oxy Ingleside Property Holdings LLC for a nearly 100-acre campus portion of the former U.S. Naval Station Ingleside (see Shale Daily, Aug. 3, 2012).

OxyChem has operated a chemical plant at Ingleside since 1987. The campus portion is the third and final piece of the former naval base to be sold. Oxy has said it plans development of the base property in phased projects worth about $1 billion. Projects could include pipeline and barge facilities to handle liquefied petroleum gas produced from the Eagle Ford Shale; a liquefied natural gas facility also is possible, along with storage for crude oil, condensate and refined products, Occidental officials told Ingleside City officials previously.

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