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Enterprise Products Partners will increase its LPG export capacity

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Enterprise Products Partners and LPG

Other than Targa Resources, the other company investing major sums to participate in LPG exports is Enterprise Products Partners (EPD). EPD operates a marine terminal on the Houston Ship Channel on the U.S. Gulf Coast that’s able to load propane and butane onto tanker vessels. In March 2013, EPD completed an expansion project that increased its loading capacity from 4 million barrels per month to 7.5 million barrels per month. Enterprise commented that its LPG export business has been benefiting from higher natural gas liquids production from U.S. shale plays such as the Eagle Ford Shale and continued strong demand for propane as a feedstock for petrochemical applications, as well as for power generation and heating. Enterprise also noted that LPG loading volumes at this terminal have increased from 93 thousand barrels per day in 2011, to 131 thousand barrels per day in 2012, to 231 thousand barrels per day in 2013.

2014.03.03 - EPD Export Summary

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In September of last year, EPD announced that it would spend money to further expand its LPG export terminal to increase loading capacity from 7.5 million barrels per month to ~9 million barrels per month, with an expected completion date in 1Q15. Just recently, in January 2014, EPD announced that it would further expand its export capacity from 9 million barrels per month to over 16 million barrels per month. The latest expansion is expected to be in service by the end of 2015 and is supported by long-term export agreements.

Note that EPD is a component of MLP-focused ETFs such as the Alerian MLP ETF (AMLP), the Alerian Energy Infrastructure ETF (MLPI), and the Global X MLP ETF (MLPA).

To see what parties U.S. LPG exports are affecting, please continue to the next part of this series.

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