Enterprise to develop new US Gulf Coast ethane pipeline project

12 March 2013 12:31  [Source: ICIS news]

HOUSTON (ICIS)--Enterprise Products plans to develop a new 270-mile ethane pipeline system to supply petrochemical plants in the US Gulf Coast region, the US midstream energy firm said on Tuesday.

Enterprise said it received transportation commitments from shippers to support development of its Aegis Pipeline, which will originate at the company’s liquids storage complex at Mont Belvieu near Houston. Aegis is expected to begin commercial operations in 2014.

The final design, including capacity and delivery points, will be determined once any further binding commitments are received at the conclusion of the project’s open commitment period, the company added.

To determine additional shipper interest in the project, Enterprise is conducting an open commitment period that begins Tuesday, 12 March and will end on 9 April. Cost or other financial details were not disclosed.

“The willingness of shippers to make long-term commitments provides us with the assurance necessary to build the midstream infrastructure that will facilitate additional consumption of domestically produced ethane,” said A J “Jim” Teague, chief operating officer of Enterprise’s general partner.

“Demand for price-advantaged ethane feedstock within the Gulf Coast petrochemical market is over 1m bbl/day and continues to increase,” Teague added.

By: Stefan Baumgarten
+1 713 525 2653

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