Navigator and Enterprise Product Partners to Modify the U.S. Ethylene Marine Export Terminal
Navigator and Enterprise Product Partners signed a Letter of Intent on July 12, 2017, to co-develop and modify the ethylene marine export terminal located at the Houston Ship Channel in Texas, U.S.
The terminal will be structured at Morgan’s Point Complex of the enterprise. The company shall take entire responsibility of the commercial activities including operations, management, and construction.
The new terminal will be internally connected to the enterprise’s ethylene pipeline system and salt dome storage, which is still being constructed and is anticipated to sustain a capacity of roughly six hundred million pounds. The ethylene pipeline system will interconnect numerous producers and consumers of ethylene located in and around the U.S Gulf Coast.
It will be connected to the company’s ethylene salt dome storage and ethylene pipeline system, which is currently under construction and expected to have a capacity of around 600 million pounds. The General Partner CEO of Enterprise Products, Mr. Jim Teague mentioned in his speech that “A tactically located export terminal for ethylene is a primary key to unlock rising the production capacity of petrochemical in the United States.” He further added that “Customers will be able to manage the storage and transportation of ethylene supplies from all producing facilities to international and domestic consumption derived plants.
The petrochemical companies in the United States will gain critical market diversification because of the proposed ethylene terminal for exports. The US will no longer depend entirely on the polyethylene export market. An equal JV- joint venture will be formulated to operate, build, and own the export terminal. This format will be subjected to the execution and negotiation of conclusive agreements and will be liable for positive approval from the board of directors of Navigator and Enterprise.
With this development, the petrochemical industry in the U.S. is expected to expand by 45 percent in terms of ethylene production capacity by 2020.
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