Enterprise “Sells Out” PDH Facility; In Discussions for a Second PDH
HOUSTON -- January 7, 2013
Enterprise Products Partners L.P. (NYSE:EPD) today announced that it has
executed long-term, fee-based agreements that effectively “sell out” the
partnership’s 1.65 billion pounds per year propane dehydrogenation (“PDH”)
facility that is scheduled to begin operations in the third quarter of 2015.
In anticipation of a continuing decrease in supplies of propylene, Enterprise
is having ongoing discussions with additional customers that could lead to the
development of additional PDH capacity.
In June 2012, Enterprise announced that it was proceeding with its plans to
build a PDH facility that would consume up to 35,000 barrels per day (“BPD”)
of propane to produce approximately 1.65 billion pounds per year
(approximately 750,000 metric tons per year or 25,000 BPD) of polymer grade
propylene (“PGP”). This facility will be integrated with the partnership’s
existing propylene fractionation facilities that have a capacity of 5.3
billion pounds per year (approximately 2.4 million metric tons or 80,000 BPD),
which will provide operational reliability and flexibility for both the PDH
unit and the fractionation facilities. The PDH facility will also be
integrated with Enterprise’s PGP storage facilities, 102-mile distribution
pipeline system and export terminal.
“We had very strong customer demand for the remaining capacity in our PDH
unit,” said A.J. “Jim” Teague, executive vice president and chief operating
officer of Enterprise’s general partner. “This demand is being driven by the
combination of a 38 percent decrease in propylene supplies since 2006 due to
additional ethane consumption by U.S. petrochemical companies and the growing
supplies of domestic propane from the U.S. shale plays. We are continuing our
discussions with several customers that could lead to a second PDH unit or
additional propylene manufacturing capacity.”
The weighted average term of our fee-based PDH contracts is over 15 years.
These agreements are executed with customers that have, or are affiliated with
parents that have investment grade debt ratings. Customers plan to consume the
material with respect to three different derivative sectors further
diversifying Enterprise’s customer base.
Enterprise Products Partners L.P. is one of the largest publicly traded
partnerships and a leading North American provider of midstream energy
services to producers and consumers of natural gas, NGLs, crude oil, refined
products and petrochemicals. The partnership’s assets include approximately
50,700 miles of onshore and offshore pipelines; 190 million barrels of storage
capacity for NGLs, petrochemicals, refined products and crude oil; and 14
billion cubic feet of natural gas storage capacity. Services include: natural
gas gathering, treating, processing, transportation and storage; NGL
transportation, fractionation, storage, and import and export terminals; crude
oil and refined products transportation, storage and terminals; offshore
production platforms; petrochemical transportation and services; and a marine
transportation business that operates primarily on the United States inland
and Intracoastal Waterway systems and in the Gulf of Mexico. For additional
information, visit www.enterpriseproducts.com.
This press release includes “forward-looking statements” as defined by the
Securities and Exchange Commission. All statements, other than statements of
historical fact, included herein that address activities, events, developments
or transactions that Enterprise expects, believes or anticipates will or may
occur in the future, including anticipated benefits and other aspects of such
activities, events, developments or transactions, are forward-looking
statements. These forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially, including
required approvals by regulatory agencies, the possibility that the
anticipated benefits from such activities, events, developments or
transactions cannot be fully realized, the possibility that costs or
difficulties related thereto will be greater than expected, the impact of
competition and other risk factors included in the reports filed with the
Securities and Exchange Commission by Enterprise. Readers are cautioned not to
place undue reliance on these forward-looking statements, which speak only as
of their dates. Except as required by law, Enterprise does not intend to
update or revise its forward-looking statements, whether as a result of new
information, future events or otherwise.
Enterprise Products Partners L.P.
Randy Burkhalter, 713-381-6812 or 866-230-0745
Rick Rainey, 713-381-3635
Press spacebar to pause and continue. Press esc to stop.