Midstream energy service provider,
Enterprise Products Partners L.P.
) plans to build a new liquefied petroleum gas (LPG) export
terminal on the Gulf Coast to accommodate the growing demand for
propane and butane from international customers.
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The terminal, scheduled to be commissioned in the fourth quarter
of 2015, will be designed to handle very large gas carriers. The
initial loading capacity for export grade propane or butane is
anticipated to be about 11,000 barrels per hour, or about 6
million to 6.5 million barrels per month.
Recently, Enterprise announced expansion plans for its LPG export
terminal located on the Houston Ship Channel by additional 1.5
million barrels (MMBbls), or three cargoes per month. Upon
completion of this expansion and the new terminal, the
partnership will have aggregate capacity to load about 15 million
to 16 million barrels per month of low-ethane propane or butane
at its LPG marine terminals.
Enterprise will be able to provide exceptional operational
flexibility and reliability to its customers upon completion of
its second export marine terminal. Separate, dedicated pipelines
will supply LPG from the partnership's large fractionation and
storage complex in Mont Belvieu, Texas, to each of these
In 2012, U.S. propane output from shale gas rose, but due to a
dearth of export infrastructure the majority of the yield was
circulated in the domestic market, depressing U.S. prices well
below international levels.
During 2013, LPG exports increased as companies began setting up
export infrastructure. In Sep 2013,
Royal Dutch Shell plc
) announced its selection of a site in Louisiana for a natural
gas-to-liquids facility. The new facilities are supported by over
25 customers and related long-term contracts, some of which
extend to 2024.
Enterprise carries a Zacks Rank #4 (Sell). However, Zacks Ranked
#1 (Strong Buy) stocks -
China Petroleum & Chemical Corp.
Stone Energy Corp.
) - could be good buying options for the short term.