Enterprise ethane terminal now 90pc contracted
OREANDA-NEWS. November 11, 2015. Enterprise Products Partners entered into another long-term contract for ethane sales out of its planned 200,000 b/d export terminal at Morgan's Point, Texas.
The deal means the terminal, which is slated for completion in the third quarter of 2016, is now 90pc contracted, according to the Houston-based partnership. Enterprise already operates the largest LPG export terminal on the Houston Ship Channel, which is scheduled to see an expansion come online by the end of 2015.
"This agreement is a clear indication of the continued interest for US ethane as a low cost feedstock by the global petrochemical industry," said Jim Teague, chief operating officer of Enterprise's general partner. "We are in negotiations with other customers and expect the remaining capacity to be sold out when the facility begins service. Furthermore, increased supplies of domestic ethane should help encourage continued development of infrastructure in consuming areas abroad."
Enterprise did not disclose the contractor.
Enterprise is competing with the export terminal at Marcus Hook, Pennsylania, which is scheduled to begin ethane shipments soon. Enterprise's announcement follows Ineos' announcement that it will sell a portion of the US ethane it imports from the Marcus Hook facility to ExxonMobil's cracker in Scotland.