12 July 2017
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DETAILS
and
today announced the execution of a letter of intent
to jointly develop
an ethylene marine export terminal
on the Houston Ship Channel.
Enterprise would manage the construction, operations
and commercial activities of the proposed terminal,
which would be located
at Enterprise’s Morgan’s Point complex.
Enterprise’s Morgan’s Point facility has a 45-foot draft
and includes Enterprise’s ethane marine export terminal,
the world’s largest.
through its fleet of 14 ethylene-capable vessels
that provide a virtual pipeline to deliver ethylene
to consuming customers.
The ethylene export terminal would be connected to
* Enterprise’s high-capacity ethylene salt dome storage and
* ethylene pipeline system,
which is currently under construction.
Enterprise’s ethylene storage facility
will have approximately 600 million pounds of capacity
with an injection/withdrawal rate of 210,000 pounds per hour
expandable to 420,000 pounds per hour.
Enterprise’s ethylene pipeline system
will be connected to multiple producers and consumers
of ethylene on the
The U.S. petrochemical industry is expanding
its ethylene production capacity by 45 percent
between 2016 and 2020,
based on currently announced projects.
These expansions are driven by
plentiful, low-cost supplies of natural gas and ethane
as a result of the development of U.S. shale reserves.
Almost 90 percent of these expansions
are at facilities located along the
Enterprise’s ethylene storage and pipeline system,
together with the proposed ethylene export terminal,
would provide the petrochemical industry
with logistical flexibility and an outlet to international markets.
Formation of the 50/50 joint venture
to build, own and operate
the ethylene marine export terminal
is subject to
the negotiation and execution of definitive agreements
and approval by the respective
boards of directors of
The commercialization of the project
is subject to sufficient long-term customer commitments.
A.J. “Jim” Teague,
chief executive officer of the general partner of Enterprise
“We are very pleased to work with Navigator Gas
in efforts to commercialize
an industry leading ethylene marine export terminal
on the Houston Ship Channel with unsurpassed connectivity
to ethylene producers and pipeline and storage infrastructure,”
“Customers would have the ability to manage
the transportation and storage of ethylene supplies
from the tailgate of producing facilities
to domestic and international consuming derivative plants.
The proposed ethylene export terminal would provide
U.S. petrochemical companies critical market diversification
rather than relying solely on polyethylene export markets.”
David Butters,
chief executive officer of Navigator Gas
“A strategically located ethylene export terminal
is the key to unlocking
growing petrochemical production capacity in the U.S.
We are proud to work with Enterprise,
with their proven commercial and technical capabilities,
on a project that promises to
meet the needs of our customers and
provides the seamless transportation of ethylene
from the producer to the customer,”
Source:
Enterprise Contacts:
Investor Relations
Randy Burkhalter, 713-381-6812 or 866-230-0745
or
Media Relations
Rick Rainey, 713-381-3635
or
Navigator Gas Contacts:
Oeyvind Lindeman, +44 (0)207340 4575
Chief Commercial Officer
or
Kim Davies, +44 (0)207340 0687
Head of Corporate Development
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