Enterprise and Navigator Announce Location of Ethylene Export Terminal; Begin Construction
Enterprise Products Partners L.P. (NYSE:EPD) and Navigator Holdings Ltd.
(NYSE:NVGS) announced today that construction is now under way on their
50/50 joint venture ethylene export terminal which will be located at
Enterprise’s Morgan’s Point, Texas facility on the Houston Ship Channel.
The terminal will have the capacity to export approximately 2.2 billion
pounds of ethylene per year. Refrigerated storage for 66 million pounds
of ethylene is being constructed on-site and will provide the capability
to load ethylene at rates of 2.2 million pounds per hour. Commercial
operations are expected to begin in the fourth quarter of 2019, one
quarter earlier than previously projected.
By providing access to international markets, the new export terminal
will facilitate continued growth of domestic ethylene production, which
is expected to reach 90 billion pounds per year by 2021. In addition,
the terminal being constructed by Enterprise and Navigator will promote
supply diversification for expanding markets like Asia, which rely on
cost-advantaged U.S. feedstocks.
The high-capacity ethylene salt dome storage facility Enterprise is
developing at its complex in Mont Belvieu, Texas is scheduled to begin
service in the second quarter of 2019. Upon completion, this storage
facility will have a capacity of approximately 600 million pounds with
an injection/withdrawal rate of 420,000 pounds per hour 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 on schedule to begin service in 2020. The
section from Mont Belvieu to Morgan’s Point is scheduled to be in
service in 2019 to support the export terminal.
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. Our services include: natural gas
gathering, treating, processing, transportation and storage; NGL
transportation, fractionation, storage and import and export terminals;
crude oil gathering, transportation, storage and terminals;
petrochemical and refined products transportation, storage and
terminals; and a marine transportation business that operates primarily
on the United States inland and Intracoastal Waterway systems. The
partnership’s assets include approximately 50,000 miles of pipelines;
260 million barrels of storage capacity for NGLs, crude oil, refined
products and petrochemicals; and 14 billion cubic feet of natural gas
storage capacity.
Navigator Holdings Ltd. is the owner and operator of the world’s largest
fleet of handysize liquefied gas carriers and a global leader in the
seaborne transportation of petrochemical gases, such as ethylene and
ethane, liquefied petroleum gas (“LPG”) and ammonia. We play a vital
role in the liquefied gas supply chain for energy companies, industrial
consumers and commodity traders, with our sophisticated vessels
providing an efficient and reliable ‘floating pipeline’ between the
parties. We continue to build strong, long-term partnerships based on
mutual trust, our deep technical expertise and modern versatile fleet.
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 and/or Navigator Gas 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
and Navigator Gas’s respective 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, neither Enterprise nor Navigator Gas intends
to update or revise their respective forward-looking statements, whether
as a result of new information, future events or otherwise.
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