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Enterprise Rethinks, Upsizes LPG Export Plan

Enterprise Products Partners LP plans to further expand its liquefied petroleum gas (LPG) export terminal at Oiltanking Holding Americas Inc.'s complex on the Houston Ship Channel instead of developing a second terminal site.

Enterprise's expanded LPG terminal is supported by a 50-year service agreement with Oiltanking Partners LP to provide additional dock space and related services. The expanded LPG export terminal is expected to be in service by the end of 2015 and is supported by long-term LPG export agreements.

The expansion is in lieu of a second LPG terminal that was announced in October (see Shale Daily, Oct. 3, 2013) and will result in more capacity than previously anticipated.

"The decision to expand at Oiltanking was directly attributable to our joint experience of loading LPG vessels on the Houston Ship Channel and our 33-year relationship with Oiltanking," said Michael Creel, CEO of Enterprise's general partner. "Demand for both current and future LPG exports continues to be strong. The location of the expanded terminal at Oiltanking enables us to increase maximum loading capacity to approximately 27,000 bbl per hour, the highest in the industry, while nominally reducing the overall capital costs associated with the project."

A number of LPG export projects/expansions have been proposed by companies such as Phillips 66 (see Daily GPI, Nov. 4, 2013) as well as partners Williams and Boardwalk Pipeline Partners LP.

Upon completion of its expanded facilities, Enterprise will have aggregate capacity to load more than 16 million bbl per month of low-ethane propane and/or butane.

Additionally, Creel said Enterprise is continuing negotiations with several customers for the potential development of an ethane export terminal (see Daily GPI, Dec. 30, 2013). "Our site evaluation for this facility continues," he said. "Depending on the outcome of these discussions, estimated ethane export demand and ship draft requirements, we expect the ethane export facility will be sited either adjacent to our refined products export terminal in Beaumont or on the Houston Ship Channel."

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