HOUSTON—Enterprise Products Partners LP (NYSE: EPD) May 28 announced it is extending its ethylene pipeline and logistics system further into South Texas, a leading growth area for new crackers and ethylene derivative plants.
The Baymark ethylene pipeline will originate in the Bayport area of southeast Harris County and extend approximately 90 miles to Markham, Texas in Matagorda County. The pipeline is supported by long-term customer commitments and is scheduled to begin service in fourth-quarter 2020. The project is a joint venture between Enterprise and Lavaca Pipe Line Co., a subsidiary of Formosa Plastics Corp. U.S.A. Enterprise will be the majority owner, operator, and commercial manager for the new pipeline.
“The U.S. petrochemical industry is experiencing unprecedented growth with production of ethylene expected to exceed 100 billion pounds per year by 2025,” said A.J. “Jim” Teague, CEO of Enterprise’s general partner. “This growth in the petrochemical sector is creating additional opportunities for Enterprise to grow our midstream petrochemical services. The Baymark Pipeline further extends our petrochemical value chain, providing producing and consuming customers with enhanced access to the largest liquids storage hub in North America at Mont Belvieu, as well as linking them to growing domestic and international markets.”
The Baymark Pipeline will provide access to a high-capacity ethylene storage well Enterprise is repurposing at its Mont Belvieu complex, as well as connectivity to the ethylene export terminal currently under construction at Morgan’s Point. The storage well is expected to be completed in third-quarter 2019 and will have a capacity of 600 million pounds. The terminal will have the capacity to export approximately 2.2 billion pounds of ethylene per year and is on schedule to begin service in fourth-quarter 2019.
Pipe maker responds to the midstream’s need for specialized water disposal products.
Howard Energy Partners (HEP) on June 13 announced that it has completed the expansions of its bulk liquid terminal facilities in Port Arthur and Corpus Christi, Texas.
Increasing unconventional-play takeaway capacity continues, as moving gas deeper into the U.S. Northeast and both oil and gas to foreign markets via the Gulf Coast are a work in progress.