Enterprise Products to Build Ethane Export Facility on Texas Gulf Coast
Enterprise Products Partners L.P. (EPD) announced today that it plans to build a fully refrigerated ethane export facility on the Texas Gulf Coast. Enterprise has executed long-term contracts to support the development of the facility, which is designed to have an aggregate loading rate of approximately 10,000 barrels per hour, or up to 240 thousand barrels per day (“MBPD”). The export facility is expected to begin operations in the third quarter of 2016.
“We are pleased to announce the successful development of our fully refrigerated ethane export facility, which will be the largest in the world,” said Michael A. Creel, chief executive officer of Enterprise’s general partner. “We continue to receive strong interest from the international community for this project and are having ongoing discussions with other potential customers that could result in our contracting the remaining capacity of the facility.”
“This facility is another example of Enterprise serving incremental market demand for growing supplies of U.S. energy. This is particularly important for ethane, which is a byproduct of natural gas and crude oil production and has limited uses. We estimate U.S. ethane production capacity currently exceeds U.S. demand by 300 MBPD and could exceed demand by up to 700 MBPD by 2020, after considering the estimated incremental demand from new ethylene facilities that have been announced. By providing new markets access to ethane, we are assisting U.S. producers to increase their production, which assures the U.S. will have access to abundant supplies of domestically produced natural gas and crude oil,” stated Creel.
Enterprise has gotten “strong interest” in the project from abroad and continues to discuss supplying potential customers, Creel said.
If the customers are wise they will contract EPD for their import terminal as well.
It is pretty sad. THe CEO at EPD comes from our chemical industry. Just a few short Obama years ago he could not envision an American industry which did not rapdily build capacity to displace here cost competitors around the world.
Seems they have solved the chichen and egg problem with American's sudden gushing providence of clean useful energy products.
Now the big story will be Toyota's hydrogen fuel cell car engines running on American formed natural gas.
The enxt person in our big chair has only let up the floor what Obama is purposefully holding down while claiming not to.
Calibane is certainly correct never did I imagine energy pipe lines and infrastructure would so mockingly be blocked for these many years. Just as corn ethanol mandates would not be reduced following the RFS Law itself as the oil producing regions were thrown into chaos.
Obama's strain of political power driven by irrational negative emotionalism is far beyond what I ever thought possible.
But now the Progressive Wall Street crew are placing their bets on American natural gas. Which assures everyone that if we lose our minds and elect the Clinton power structure again - it will not be doing the Obama game with natural gas. In this case their special interest will actually be good for America as it seeks to simply result in economic rationality.