Enterprise Products Partners LP said it plans to expand its ethylene pipeline and logistics system further into South Texas, with a targeted in-service date in the fourth quarter of 2020, as the partnership looks to grow its midstream petrochemical services.
Underpinned by long-term customer commitments, the Baymark ethylene pipeline would extend about 90 miles from the Bayport area of southeast Harris County, Texas, to Markham in Matagorda County, Texas, according to a May 28 news release. It is a joint venture between Enterprise and Formosa Plastics Corp. USA subsidiary Lavaca Pipe Line Co., with Enterprise serving as the majority owner, operator and commercial manager for the pipeline.
The pipeline is designed to connect to Enterprise's ethylene storage well at its Mont Belvieu complex, which would have a capacity of 600 million pounds of ethylene, and to the ethylene export facility at Morgan's Point, Texas, which would be capable of exporting about 2.2 billion pounds of ethylene per year. The storage well is scheduled for completion in the third quarter, while the export terminal is expected to start service in the fourth quarter.
"The Baymark Pipeline further extends our petrochemical value chain, providing producing and consuming customers with enhanced access to the largest liquids storage hub in North America at Mont Belvieu, as well as linking them to growing domestic and international markets," said A. James Teague, CEO and director of Enterprise's general partner.
Enterprise is one of the largest midstream energy service providers in North America, with businesses that include natural gas, NGL and crude oil gathering, processing, transportation and storage.