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Business Wire 1-Aug-2023 5:45 AM
Enterprise Products Partners L.P. (NYSE:EPD) ("Enterprise") today announced the start of service at its second propane dehydrogenation ("PDH") plant ("PDH 2") in Chambers County, Texas. Underwritten by long-term, fee-based contracts, PDH 2 has the capacity to consume 35,000 barrels per day ("BPD") of propane to produce 1.65 billion pounds of polymer grade propylene ("PGP") per year. Combined with Enterprise's existing PDH 1 plant, the company can consume 70,000 BPD of propane to produce 3.3 billion pounds per year of PGP at its Chambers County complex.
"Propylene is the basic building block used to produce virtually all durable products and, as one of the main pillars of modern civilization, is essential to human survival and improved quality of life," said A.J. "Jim" Teague, co-chief executive officer of Enterprise's general partner. "PDH 2 will provide abundant and cost-advantaged shale-based, on-purpose production to supply our petrochemical customers with the feedstock to produce products that meet the needs of a growing global population. Our newest PDH plant is among $3.8 billion of major growth projects that we announced would begin service and generate new sources of cash flow by the end of 2023."
Companywide, Enterprise now has the capacity to produce 11 billion pounds of propylene per year. In addition, the new PDH 2 facility is integrated with the company's propylene system that includes more than 1,000 miles of high-capacity pipelines, over 3 billion pounds of storage capacity, and ability to export approximately 4 billion pounds per year. By providing access to centrally located market hubs, the company's propylene infrastructure network gives customers the capability to balance supply and demand, thereby facilitating improved utilization of Enterprise assets.
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. Services include: natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage and marine terminals; crude oil gathering, transportation, storage and marine terminals; petrochemical and refined products production, transportation, storage, and marine terminals and related services; and a marine transportation business that operates on key U.S. inland and intracoastal waterway systems. The partnership's assets include more than 50,000 miles of pipelines; over 260 million barrels of storage capacity for NGLs, crude oil, refined products and petrochemicals; and 14 billion cubic feet of natural gas storage capacity. Please visit www.enterpriseproducts.com for more information.
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 and its general partner expect, believe or anticipate will or may occur in the future are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from expectations, 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 Enterprise's reports filed with the Securities and Exchange Commission. 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.