Enterprise Moves Forward with $5 Billion ‘World-scale’ Petchem Project

Enterprise Products Partners LP completed a tax abatement application for a proposed $5 billion ethylene manufacturing facility east of Houston in Beaumont, Texas.

The application is a preliminary filing that represents an early step toward a possible project for a new “world-scale petchem facility” near the Texas-Louisiana border, according to a June 15 report by Tudor, Pickering, Holt & Co. (TPH). Commercial discussions for the project are ongoing but formal commitments have not yet been disclosed.

“EPD has stated interest in developing additional ethylene production capacity in the past and at 2 mtpa, the proposed facility would rank among the largest in the U.S.,” TPH analysts wrote. “The company has framed the project as still in early stages with any ultimate FID (final investment decision) likely to come alongside a strategic partner and a preference toward reduced commodity exposure similar to commercial agreements at their PDH units.”