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Enterprise, Navigator Gas commit to Gulf Coast ethylene export terminal
HOUSTON, January 31, 2018 (PCW) –- Enterprise Products Partners and Navigator Gas on Wednesday announced they would jointly build an ethylene export terminal on the US Gulf Coast.
The facility would have a capacity of 1 million mt/yr (2.2 billion lbs/yr) and is expected to be in service by 1Q 2020. The projected is anchored by agreements with Flint Hills Resources and a major Japanese trading company. The exact location of the terminal is yet to be determined, the companies said. EPD had previously looked at siting it within one of their existing export terminals or adding ethylene export capabilities onto its ethane terminal at Morgan’s Point.
CEO Jim Teague said during the call that a location other than Morgan’s Point would be considered if more favorable tax abatements were offered at the alternative site.
Some 30,000 mt of ethylene storage will be constructed on-site and the terminal will be able to load ethylene at a rate of 1,000 mt/hour.
EPD is also developing a high-capacity ethylene salt dome storage facility at Mont Belvieu with some 600 million pounds with an injection/withdrawal rate of 420,000 pounds per hour. The storage facility is expected to begin service in the first quarter of 2019 and will be designed to enable connections to the eight ethylene pipelines within a half-mile of the Enterprise ethylene storage system. In addition, Enterprise is building a new ethylene pipeline from Mont Belvieu to Bayport, Texas, which is scheduled to begin service in 2020.
The location and final investment decisions for the terminal are subject to reaching acceptable arrangements with local taxing authorities.
Currently, there is only one ethylene export terminal along the US Gulf Coast, located at Galena Park, Texas. It is jointly operated by Chevron Phillips, ExxonMobil and Mitsubishi and has an export capacity of 660 million lbs/yr. Odfjell is also mulling an ethylene export facility at its existing Seabrook terminal. -- Samantha Hartke