GC joint venture for ethylene facility

Enterprise Products Partners LP and Navigator Holdings Ltd. announced that the two have entered into a 50/50 joint venture to build a new ethylene export facility along an as yet undetermined site along Gulf Coast (GC). The facility would have the capacity to export about 1M tons of ethylene annually. Refrigerated storage for 30,000 tons of ethylene will be constructed on-site and will provide the capability to load ethylene at rates of 1K tons an hour. It is expected to be in service by the first quarter of 2020. The project is supported by long-term contracts with anchor customers that include Texas-based ethylene producer Flint Hills Resources, and a major Japanese trading company. “By 2021, the petrochemical industry is expected to expand aggregate ethylene production capacity in Texas and Louisiana by nearly 50 percent,” said A.J. “Jim” Teague, CEO of Enterprise’s general partner. The location and final investment decisions for the terminal are subject to reaching acceptable arrangements with local taxing authorities. (Source: Navigator Gas 01/31/18)