Enterprise enters into long-term agreement for PDH 2 facility

July 1, 2020 By    

An affiliate of Enterprise Products Partners has executed a long-term agreement with Marubeni Corp. to supply polymer grade propylene (PGP) from the partnership’s second propane dehydrogenation plant (PDH 2), which is currently under construction. Marubeni Corp. is a major Japanese integrated trading and investment business conglomerate and olefins trader.

PDH 2, being built at Enterprise’s complex near Mont Belvieu, Texas, will have the capacity to upgrade 35,000 barrels per day (bpd) of propane into 1.65 billion pounds per year (25,000 bpd) of PGP.

PGP is a primary petrochemical that has global demand growth as a feedstock to manufacture hundreds of consumer, medical and industrial products that improve the daily lives and protect the health of people around the world, Enterprise says.

With the facility’s expected completion in the second quarter of 2023, Enterprise says it will have total capacity to produce up to 11 billion pounds per year of PGP. The complex has the capability to produce about 8 billion pounds per year of PGP from its seven propylene fractionators and 3 billion pounds of PGP per year from its two PDH facilities. These plants, using two processes, provide operational flexibility and reliability, the company adds.

“We are pleased to expand our relationship with one of the world’s premier providers of olefins logistics services for the petrochemical industry,” says A.J. “Jim” Teague, co-CEO of Enterprise’s general partner. “Reliable production of PGP from our new PDH 2 facility complements our current export business with Marubeni and extends our integrated midstream network to meet the needs of their customers around the globe.”

Enterprise’s network of PGP assets also includes more than 300 miles of delivery pipelines, 26 PGP connections, more than 5 million barrels of storage capacity and an export terminal on the Houston Ship Channel.

Enterprise Products Partners is a North American provider of midstream energy services to producers and consumers of natural gas, natural gas liquids, crude oil, refined products and petrochemicals.

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About the Author:

Brian Richesson is the editor in chief of LP Gas Magazine. Contact him at brichesson@northcoastmedia.net or 216-706-3748.

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