Enterprise ships out first cargo from new US ethylene terminal

Houston — The first export cargo departed Enterprise Products Partners' new ethylene terminal along the Houston Ship Channel on January 2 during a nearly eight-hour window when outbound traffic was able to move out amid fog, according to sources familiar with the operation.

The 10,000 mt Asia-bound cargo was the first to load at the new terminal, which began its first phase of operations in late December. The Navigator Europa, an ethylene carrier owned by Navigator Gas, Enterprise's joint-venture partner in the new terminal, was shown loaded at Morgan's Point and was in the Panama Canal, according to cFlow, S&P Global Platts trade flow software.

When asked if the shipment spread throughout the US spot ethylene market, a trader noted, "yes, heading east via (Panama) Canal."

Enterprise spokesman Rick Rainey declined comment Tuesday.

Enterprise had intended to ship out the first cargo in late December, when the first phase of the new terminal came online. That initial phase of operations will have 60-70% of its eventual 1 million mt/year capacity, depending on marketing opportunities, according to company executives.

Enterprise converted an ethane cavern at its natural gas liquids and petrochemical hub in Mont Belvieu, east of Houston, to hold up to 275,000 mt of ethylene. The company also has started up a new bidirectional pipeline connecting that cavern to the new terminal at Morgan's Point, where Enterprise also operates an ethane export facility.

The second phase will bring online a refrigerated tank currently under construction at the new terminal that will hold up to 30,000 mt of ethylene. That phase also will include a new six-mile pipeline extension to Bayport closer to the mouth of the waterway, where several producers operate ethylene pipelines.

MORE PARTICIPANTS EXPECTED

The new ethylene system is expected to have eight participants by first quarter next year and potentially 20 — including seven US producers — by Q4 2020, according to the company.

Enterprise also expects to see financial contracts tied to the new hub, with connectivity throughout the US Gulf. The company is preparing for contracts to be listed on a futures exchange after transactions begin next year.

The US currently has one ethylene export terminal, operated by Targa Resources at its ship channel facility, which is contracted to Mitsubishi Chemical. The facility has a loading capacity of 1,000 mt/d, so it takes about 10 days to load a Handysize vessel.

Enterprise's terminal can load 1,000 mt/hour at multiple docks.

The Navigator Europa can carry multiple cargoes in separate tanks, including ethylene, propane, propylene, butadiene, ammonia, and vinyl chloride monomer, according to the company's website.