Enterprise and Navigator Gas to Build Ethylene Export Terminal
31 January 2018 - 11:30PM
Business Wire
Enterprise Products Partners L.P. (NYSE: EPD) and Navigator
Holdings Ltd. (NYSE: NVGS) announced today that they have entered
into a 50/50 joint venture to build a new ethylene export facility
along the U.S. Gulf Coast that will have the capacity to export
approximately 1 million tons of ethylene per year. Refrigerated
storage for 30,000 tons of ethylene will be constructed on-site and
will provide the capability to load ethylene at rates of 1,000 tons
per hour. The facilities are expected to be in service by the first
quarter of 2020. The project is supported by long-term contracts
with anchor customers that include U.S. ethylene producer Flint
Hills Resources and a major Japanese trading company.
“This new ethylene export terminal will support the growing
production of ethylene on the U.S. Gulf Coast by providing access
to international markets,” said A.J. “Jim” Teague, chief executive
officer of Enterprise’s general partner. “By 2021, the
petrochemical industry is expected to expand aggregate ethylene
production capacity in Texas and Louisiana by nearly 50 percent to
approximately 90 billion pounds per year. The resulting rapid
growth in the supply of U.S. ethylene, combined with increased
demand from international markets, like Asia, creates an ideal
scenario in which markets abroad are able to diversify their supply
by accessing cost-advantaged feedstocks made possible by the shale
revolution in the United States. This export terminal will also
offer diversification opportunities for domestic petrochemical
producers who will not have to rely solely on the export market for
derivatives like polyethylene. We are very pleased to work with
Navigator Gas in efforts to commercialize an industry-leading
ethylene marine export terminal that offers unsurpassed
connectivity to ethylene producers and pipeline and storage
infrastructure.”
David Butters, chief executive officer of Navigator Gas,
commented, “The strong, broad interest shown by prospective
terminal customers during the initial marketing phase has
reinforced our conviction on the critical need for an ethylene
export terminal. It is clear that domestic producers value the
opportunity to access global markets and international consumers
consider the U.S. as a reliable and affordable source of ethylene
to fuel their petrochemical manufacturing in Europe and the Far
East. We are delighted to work with Enterprise on this project that
promises to meet the needs of our customers and enables us to
provide the seaborne transportation of the ethylene from producer
to customer.”
Enterprise is also developing a high-capacity ethylene salt dome
storage facility at its complex in Mont Belvieu, Texas. This
storage facility will have a capacity of approximately 600 million
pounds with an injection/withdrawal rate of 420,000 pounds per
hour. The storage facility is expected to begin service in the
first quarter of 2019 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
scheduled to begin service in 2020.
The location and final investment decisions for the terminal are
subject to reaching acceptable arrangements with local taxing
authorities.
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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version on businesswire.com: http://www.businesswire.com/news/home/20180131005361/en/
Enterprise ProductsRandy
Burkhalter, 713-381-6812 or 866-230-0745Investor RelationsorRick
Rainey, 713-381-3635Media RelationsorNavigator GasOeyvind Lindeman, +44 (0)20 7340
4575Chief Commercial OfficerorNiall Nolan, +44 (0) 20 7340
4852Chief Financial Officer
Navigator (NYSE:NVGS)
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