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Enterprise Agrees to Expand Houston Oil Loading Capacities

Zacks Equity Research

Enterprise Products Partners L.P. EPD recently announced its decision to boost loading capacity of oil, polymer grade propylene (PGP) and liquefied petroleum gas (LPG) at its Enterprise Hydrocarbon Terminal.

To capitalize on the growing crude export volumes in the United States, the partnership has decided to construct an eighth dock at its Enterprise Hydrocarbon Terminal, situated on the Houston Ship Channel. The midstream energy provider has estimated that the export volumes of oil from the domestic market will surge to 8 million barrel per day by 2025 from 3 million barrel a day. Once the dock starts operating, slated for the fourth quarter of 2020, the partnership will be capable to load additional 840,000 barrels per day of crude. This will boost oil export capacity of Enterprise Products from the Houston Ship Channel to 2.75 million barrels a day. The partnership added that the new dock might give shelter to a large vessel — Suezmax vessel.

Enterprise Products is also estimating the export volumes of U.S. LPG will double by 2025. The latest expansion developments will boost the partnership’s loading capacity of LPG by 260,000 barrels per day. Enterprise Products added that the expansion project of LPG at its Enterprise Hydrocarbon Terminal will come online by the third quarter of 2020. Following the completion of the expansion, the partnership will be capable of loading up to 1.1 million barrel per day of LPG from the Enterprise Hydrocarbon Terminal. The total loading capacity includes the capacity of another project of the partnership that is likely to be operational by late third-quarter 2019.

The midstream infrastructure provider is including refrigeration facilities at the terminal to meet the mounting demand for PGP outside the United States. This development, expected to be operational by the fourth quarter of 2020, will help Enterprise Products boost its loading capacity of refrigerated PGP by 67,200 barrel per day.

Enterprise Products added that investments in the latest expansion projects will lift its loading capacity of LPG, PGP and crude by 1.3 million barrel per day and will thereby give the products of Texas access to markets both in the United States and outside.

Headquartered in Houston, TX, Enterprise Products currently carries a Zacks Rank #2 (Buy). Other prospective players in the energy space include Oceaneering International, Inc. OII, Helix Energy Solutions Group, Inc. HLX and Approach Resources Inc. AREX. All the stocks sport a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.

Oceaneering International beat the Zacks Consensus Estimate for it’s bottom line in the past four quarters.

Helix Energy is likely to see earnings growth of 47.4% through 2019.

Approach has surpassed the Zacks Consensus Estimate for its bottom line in three of the past four quarters.

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Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report
 
Helix Energy Solutions Group, Inc. (HLX) : Free Stock Analysis Report
 
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