07 January 2014 14:59 [Source: ICIS news]
HOUSTON (ICIS)--Enterprise Products Partners will further expand its liquefied petroleum gas (LPG) export terminal at US petrochemical storage firm Oiltanking’s complex on the Houston Ship Channel rather than pursuing plans for a second LPG terminal, the US-based midstream energy company said on Tuesday.
At the same time, Enterprise is continuing talks with several customers on the development of an ethane export terminal in Texas, it said.
Enterprise said that the expanded LPG export terminal is expected to be in service by the end of 2015. The project is supported by long-term LPG export agreements and by a 50-year service agreement with oil and chemicals logistics firm Oiltanking to provide additional dock space and related services.
Upon completion of the expansion, Enterprise will have aggregate capacity to load in excess of 16m bbl/month of low-ethane propane and/or butane, it said.
The expansion - in lieu of a second LPG terminal announced in October 2013 - and would result in more capacity than previously anticipated, it added.
Demand for both current and future LPG exports continues to be strong, according to Enterprise CEO Michael Creel.
The location of the expanded terminal at Oiltanking's complex enables Enterprise to increase maximum loading capacity to about 27,000 bbl/hour, "the highest in the industry, while nominally reducing the overall capital costs associated with the project," he added.
"On the ethane front, we continue to negotiate with several customers that would support the development of an ethane export terminal," Creel said.
"Depending on the outcome of these discussions, estimated ethane export demand and ship draft requirements, we expect the ethane export facility will be sited either adjacent to our refined products export terminal in Beaumont [Texas] or on the Houston Ship Channel," he said.
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