Enterprise Products, Navigator Gas to build ethylene export terminal in US

US midstream company Enterprise Products Partners and Navigator Gas, a UK gas shipping company will jointly construct a new ethylene export terminal along the US Gulf Coast.

The two companies have formed an equally owned joint venture for this purpose.

Enterprise Products Partners says that the new US ethylene export terminal will be able to annually export nearly a million tons of ethylene.

The ethylene export terminal is anticipated to back the growing ethylene production on the US Gulf Coast by giving access to global markets.

Commenting on the new ethylene export terminal, David Butters – CEO of Navigator Gas, said: “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.”

Company announcement. Photo courtesy of Stuart Miles at FreeDigitalPhotos.net.

The exact location of the new ethylene export terminal hasn’t been disclosed by Enterprise Products Partners and Navigator Gas so far. The selection of the facility will be based on reaching acceptable arrangements with local taxing authorities, stated Enterprise Products Partners.

The partners also have plans to build a refrigerated storage facility with a capacity to store 30,000 tons of ethylene on-site. This will give a capability to load ethylene at the rate of 1,000 tons per hour.

The facilities are slated to begin operations by the first quarter of 2020.

The new US ethylene export terminal is already backed by long-term contracts anchor customers that include US ethylene producer Flint Hills Resources and an undisclosed Japan-based trading major.

A.J. “Jim” Teague – General Partner of Enterprise Products Partners, commenting on the new ethylene export terminal, said: “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.”

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