Enterprise and Navigator to develop US ethylene marine export terminal
Enterprise Products Partners and Navigator have signed a letter of intent (LoI) to jointly develop an ethylene marine export terminal at the Houston Ship Channel in Texas, US.
The proposed terminal will be at Enterprise’s Morgan’s Point complex. The company will be responsible for managing its construction, operations, and commercial activities.
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 ethylene pipeline system of Enterprise will be connected to several ethylene producers and consumers on the US Gulf Coast.
Enterprise Products general partner CEO Jim Teague said: “Customers would have the ability to manage the transportation and storage of ethylene supplies from the tailgate of producing facilities to domestic and international consuming derivative plants.
“The proposed ethylene export terminal would provide US petrochemical companies critical market diversification rather than relying solely on polyethylene export markets.”
A 50/50 joint venture (JV) will be formed to build, own and operate the ethylene marine export terminal.
The JV formation is subject to the negotiation and execution of definitive agreements and approval by the respective boards of directors of Enterprise and Navigator.
Navigator Gas CEO David Butters said: “A strategically located ethylene export terminal is the key to unlocking growing petrochemical production capacity in the US.”