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Enterprise, LyondellBasell strike deals to develop new chemical plant in Texas

Enterprise Products Partners LP and chemical company LyondellBasell Industries NV executed long-term contracts supporting the construction of a second propane dehydrogenation plant at Enterprise's Mont Belvieu, Texas, complex.

The second plant, called PDH 2, would be capable of consuming up to 35,000 barrels per day of propane and produce up to 1.65 billion pounds per year of polymer grade propylene, an NGL-derived chemical feedstock, according to a Sept. 26 news release. Under the service-based contracts, executed through affiliates, Enterprise would process propane produced by LyondellBasell to produce the propylene for a fixed fee.

"[Polymer grade propylene] is a primary petrochemical that can be converted into hundreds of products that improve the daily lives of people around the world," Enterprise general partner CEO and director A.J. Teague said. "Demand growth for these propylene-based products is strong and PDH 2 will provide cost-advantaged supply assurance to our customers, enabling expansion of their downstream businesses to satisfy this global demand."

The integration of PDH 2, the first plant and Enterprise's propylene fractionation facilities would produce 9 billion pounds of polymer grade propylene supply yearly.

Enterprise also negotiated terms with S&B Engineers and Constructors Ltd. for a fixed-cost engineering, procurement and construction contract to construct the project.

The project is scheduled to begin operations in the first half of 2023.

Enterprise provides midstream energy services to producers and consumers of gas, NGLs, crude oil, refined products and petrochemicals.