Enterprise Products Partners L.P. (NYSE: EPD) (“Enterprise”) today 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 the fourth quarter of 2020. The project is a joint venture between Enterprise and Lavaca Pipe Line Company, a subsidiary of Formosa Plastics Corporation, 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, chief executive officer 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 the third quarter of 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 the fourth quarter of 2019.
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 currently include approximately 49,200 miles of pipelines; 260 million barrels of storage capacity for NGLs, crude oil, petrochemicals and refined products; 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.
Copyright Business Wire 2019