27 June 2011 16:52 [Source: ICIS news]
HOUSTON (ICIS)--Enterprise Products Partners plans to build a sixth natural gas liquids (NGL) fractionator at its Mont Belvieu facility in Texas in reaction to growing shale gas production, the company said on Monday.
The fractionator will add a 75,000 bbl/day capacity at Mont Belvieu and is projected to begin service in early 2013, Enterprise said. It will accommodate growth of natural gas production from the Eagle Ford Shale basin in South Texas.
The unit will boost Enterprise’s fractionation capacity at Mont Belvieu to in excess of 450,000 bbl/day, the company said. System-wide, the partnership’s net fractionation capacity will increase to more than 780,000 bbl/day.
“The announcement of our third fractionator at Mont Belvieu in less than two years is yet another indication of the robust demand for Enterprise’s midstream services to handle increased natural gas production from the expanding shale plays,” said AJ Teague, executive vice president and chief operating officer of Enterprise’s general partner.
“From a demand perspective, a persistent and significant differential between natural gas and crude oil prices continues to favour NGLs over heavier crude oil derivatives as feedstocks for the petrochemical industry,” Teague also said.
“Petrochemical facilities have responded with announcements of planned new constructions or modifications to make greater use of NGL feedstocks,” Teague said.
“In the last 12 months alone, approximately 100,000-150,000 bbl/day of heavy cracker feedstocks have been replaced with light-end feedstocks.”
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