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Enterprise’s PDH producing PGP; 4Q earnings up 19%
HOUSTON, January 31, 2018 (PCW) – Enterprise Products Partners on Wednesday said its 1.65 billion lbs/yr propane dehydrogenation unit at Mont Belvieu is up and running and producing polymer-grade propylene.
Commissioning activities are expected to last another month, company executives said in an earnings-related call. Executives added that PGP produced during the PDH’s entire commissioning phase has been sold to customers. Commissioning activities began in December. The unit is expected to be running at full capacity by the end of February, executives added.
EPD on Wednesday reported 4Q net income of $797 million, up nearly 19% from the $670 million seen in the year-ago period, due to record liquid pipeline and marine terminal volumes.
The company’s Petrochemical & Refined Products segment’s gross operating margin increased 16% to $172 million for 4Q compared to 4Q 2016. Total petrochemical and refined products transportation volumes for the quarter were 766,000 b/d compared to 840,000 b/d in 4Q 2016.
The propylene fractionation business reported a $3 million decrease in gross operating margin in 4Q compared to the year-ago period, primarily due to higher PDH commissioning costs. Propylene fractionation volumes were 81,000 for the quarter, compared to 67,000 b/d in 4Q 2016.
The NGL Pipelines & Services group’s gross operating margin was up 11% percent to $872 million in 4Q, compared to $784 million in 4Q 2016. NGL pipeline volumes were a record 3.3 million b/d in the quarter, compared to 3.1 million b/d in 4Q 2016. Total NGL marine terminal volumes increased 28% to 564,000 b/d for 4Q, compared to 440,000 b/d in the year-ago period.
Enterprise’s ATEX ethane pipeline reported a $22 million increase in gross operating margin for the quarter, compared to the year-ago quarter, primarily due to a 31,000 b/d increase in volume. Average transportation volumes on ATEX were 144,000 b/d in 4Q, compared to 113,000 b/d in 4Q 2016. Gross operating margin from the Morgan’s Point ethane export terminal and related Houston Ship Channel pipeline increased $24 million, primarily due to a 121,000 b/d increase in ethane loadings during quarter compared to 4Q 2016. -- Samantha Hartke