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Enterprise Boosts Loading Capacity at Houston Ship Channel - Analyst Blog

Zacks Equity Research

Enterprise Products Partners L.P. EPD announced that the capacity for loading fully refrigerated, low-ethane propane has now increased to 9 million barrels (MMBbls) per month at its liquefied petroleum gas (LPG) export terminal at the Houston Ship Channel. The significant increase in loading capacity came on the back of the recently completed expansion project at the facility. The price of Enterprise units has been trending upward post announcement, and is up 1.7% a piece.

The partnership will now be able to accommodate three additional ships per month due to enhancements to existing refrigeration infrastructure, which have been so built to as to add 2,500 barrels per hour (BPH) or 1.5 MMBbls per month of incremental loading capacity.

Construction of a new refrigeration train is underway that will enhance loading rates by another 11,000 BPH. The construction of the new train is likely to be over by the fourth quarter of 2015. Post expansion, Enterprise will have a capacity to load about 16 MMBbls per month of LPG, which corresponds to 29 vessels.

Enterprise’s LPG terminal has had a great contribution in turning the U.S. into the largest propane exporter in the world. Currently, the terminal has about 1,800 cargoes scheduled from 2015 to 2024. In order to guarantee adequate supply to the docks, the partnership is in the final stages of finishing a dedicated 30-inch diameter LPG pipeline from Mont Belvieu, TX to the terminal.

Enterprise Products Partners, a leading master limited partnership, is engaged in providing a wide range of midstream energy services to the producers and consumers of natural gas, natural gas liquids (NGL), and crude oil.

The partnership's assets include 51,000 miles of onshore and offshore pipelines, approximately 200 million barrels of storage capacity for NGLs, refined products and crude oil, and 14 billion cubic feet of natural gas storage capacity.

Enterprise currently carries a Zacks Rank #3 (Hold). Better-ranked stocks from the oil and gas sector include Phillips 66 Partners L.P. PSXP, Western Gas Equity Partners, L.P WGP and Hallador Energy Company HNRG. Each of these stocks sports a Zacks Rank #1 (Strong Buy).
 


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