Enterprise expanding LPG capacity at Houston Ship Channel terminal

September 12, 2018 By    

Construction is underway to increase loading capacity for LP gas at the Enterprise Hydrocarbon Terminal by 175,000 barrels per day (bpd), or about 5 million barrels per month, Enterprise Products Partners LP announced. The expansion will bring total LP gas export capacity at the terminal to 720,000 bpd, or about 21 million barrels per month.

Upon the company’s completion of the expansion project, the Enterprise terminal will have the capability to load as many as six very large gas carrier (VLGC) vessels simultaneously while maintaining the option to switch between propane and butane loadings. Once operational, the expansion will allow the terminal to load a single VLGC in less than 24 hours, creating greater efficiencies and cost savings for customers, the company says. The incremental capacity is expected to be available in the second half of 2019.

“Enterprise is already the largest exporter of propane in the world, and this expansion project will increase our ability to export LPGs from the [Enterprise hydrocarbon] facility by another 30 percent with nominal capital investment,” says A.J. “Jim” Teague, CEO of Enterprise’s general partner. “Domestic production of hydrocarbons continues to exceed expectations and U.S. demand. U.S. LPG production currently exceeds U.S. demand by over 1 million barrels per day, and domestic export terminals are approaching full utilization. We estimate that U.S. LPG production could increase by up to an additional 1.5 million barrels per day by 2025. Without access to international markets, excess LPG supplies would lead to a curtailment in U.S. crude oil and natural gas production growth. Marine terminal expansions like ours will be essential to balancing the market and meeting growing global demand for U.S. hydrocarbons.”

*Featured image: iStock.com/catscandotcom

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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