HOUSTON--(BUSINESS WIRE)--
Enterprise Products Partners L.P. (NYSE:EPD) today announced plans to construct a new isobutane dehydrogenation (“iBDH”) unit in Mont Belvieu, Texas that will have the capability to produce 425,000 tons per year of isobutylene. The project, which is supported by long-term contracts with investment-grade customers, is expected to be completed in the fourth quarter of 2019. The isobutylene produced by the plant will provide the necessary feedstock to fill underutilized capacity at Enterprise’s existing downstream octane enhancement and petrochemical facilities.
“The construction of this new iBDH plant will extend our butane value chain and allow full utilization of our existing olefins assets,” said A.J. “Jim” Teague, chief executive officer of Enterprise’s general partner. “In developing this project, we are leveraging Enterprise’s extensive integrated midstream network to turn a plentiful, cost-advantaged natural gas liquid into a higher-valued product.”
Historically, steam crackers and refineries have been the major source of propane and butane olefins for downstream use. However, with the increased use of light-end feedstocks, specifically ethane, the need for on-purpose olefins has increased. Much like Enterprise’s propane dehydrogenation unit, currently scheduled for start of operations in the second quarter of 2017, the iBDH unit will help meet market demand where supplies have been reduced. The new iBDH plant will increase Enterprise’s production of both high purity and low purity isobutylene to be used primarily as feedstock to manufacture lubricants, rubber products and alkylate for gasoline blendstock, as well as MTBE for export.
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 49,000 miles of pipelines; 250 million barrels of storage capacity for NGLs, crude oil, refined products and petrochemicals; and 14 billion cubic feet of natural gas storage capacity.
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 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 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, Enterprise does not intend to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
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