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Enterprise Products Partners Reveals Major Expansion of Export Capacity Along Houston Ship Channel

The Houston Ship Channel and adjacent refineries, part of the Port of Houston, are seen in Houston, Texas, U.S., May 5, 2019. REUTERS/Loren Elliott

Enterprise Products Partners Reveals Major Expansion of Export Capacity Along Houston Ship Channel

Mike Schuler
Total Views: 718
July 30, 2024

Houston, Texas-based Enterprise Products Partners (NYSE: EPD) has announced a significant expansion project along the Houston Ship Channel due to strong demand for natural gas liquids (NGL) export capacity.

The company is set to expand its Enterprise Hydrocarbons Terminal (EHT) by adding refrigeration capacity, boosting propane and butane export capabilities by approximately 300,000 barrels per day (BPD). Enterprise said the expansion will not only provide additional capacity for liquefied petroleum gas (LPG) but will also increase instantaneous loading rates for propane and butane, while making extra capacity available for propylene exports.

The expanded service is expected to commence by the end of 2026.

The demand for increased LPG capacity at EHT is fueled by the success Enterprise has experienced in contracting its flexible product capacity at the Neches River Terminal (NRT), currently under development in Orange County, Texas, adjacent to the company’s Beaumont East refined products terminal. Phase 1 of the NRT buildout includes a new loading dock, an ethane refrigeration train with a nameplate capacity of 120,000 BPD, and a 900,000-barrel refrigerated tank that can handle loading rates of up to 45,000 barrels per hour. This phase is expected to begin service in the second half of 2025.

Phase 2 of the NRT project will introduce a second refrigeration train, enabling Enterprise to load up to 180,000 BPD of ethane, 360,000 BPD of propane, or a combination of both. The second phase is projected to start service in the first half of 2026.

The growth capital for the EHT and NRT projects is within the company’s forecasted growth capital expenditure ranges for 2024-2026.

“Enterprise has received significant interest in ethane and LPG exports systemwide. Additional interest in expanded capacity reflects continued demand for U.S. hydrocarbons and Enterprise’s ability to quickly and economically expand our footprint to meet those needs,” said A.J. “Jim” Teague, co-chief executive officer for Enterprise’s general partner.

Enterprise Products Partners L.P. is a major publicly traded partnership and a leading North American midstream energy services provider, with extensive assets including over 50,000 miles of pipelines, over 300 million barrels of storage capacity for various products, and 14 billion cubic feet of natural gas storage capacity.

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