HOUSTON (ICIS)--US Enterprise Products on Monday announced additional expansion projects for loading polymer grade propylene (PGP), liquefied petroleum gas (LPG) and crude oil at the company’s terminal on the Houston Ship Channel.
Citing high demand for PGP on the international market, the Houston-based company is adding 67,200 bbl/day of PGP loading capability as well as the ability to co-load fully refrigerated PGP and LPG onto the same vessel. This expansion is expected to be available in Q4 2020.
Another 260,000 bbl/day of LPG loading capability will be added to the previously announced 175,000 bbl/day capacity addition, bringing the total daily loading capability to 1.1m bbl/day from the current 660,000 bbl/day capacity. The first expansion will be online in the third quarter of this year and the added expansion is expected to be in service in Q3 2020.
Additionally, Enterprise is building an eighth dock at its Houston Ship Channel terminal with the capability to load 840,000 bbl/day of crude oil. This will increasing the company’s export capacity for crude oil at the Houston Ship Channel to 2.75m bbl/day.
The crude oil project is expected to begin service in the fourth quarter of 2020, and the new dock will be able to accommodate a Suezmax vessel, the largest ship class that can navigate the Houston Ship Channel.
Much of this growth is being driven by increasing production from the Permian Basin of Texas, and company leaders cited new regulations put into place by Texas lawmakers, ensuring stability on the key waterway.
The company estimates that by 2025 exports of US crude oil will increase from 3m bbl/day to 8m bbl/day, and the domestic LPG export market will double from 1.4m bbl/day to 2.8m bbl/day.
Image above shows Enterprise's terminal on the Houston Ship Channel. Photo by Enterprise