Enterprise Products Partners L.P. has executed a long-term agreement for incremental ethane transportation capacity on the partnership’s Aegis pipeline.
“Enterprise is very pleased to enter into this agreement and provide the midstream services necessary to support the continued growth of the petrochemical industry along the Gulf Coast,” said Michael A. Creel, CEO of Enterprise’s general partner.
The Aegis pipeline, which originates at Enterprise’s natural gas liquids fractionation and storage complex in Mont Belvieu, Texas, extends 270 miles to Napoleonville, Louisiana. The initial 60-mile segment between Mont Belvieu and Beaumont, Texas began service in September of 2014. The remaining portion is scheduled for completion by the end of 2015.
With this agreement, total capacity commitments for the Aegis pipeline will ramp up over the next four years to more than 300,000 barrels per day (“BPD”). Capacity on the pipeline can be expanded to approximately 400,000 BPD.
When completed, Aegis will be part of a 500-mile ethane header system stretching from Corpus Christi, Texas to the Mississippi River. This header system will serve as a major ethane supply artery for more than 20 petrochemical facilities expected to represent over 90 percent of domestic ethylene production capacity by 2020.