Midstream energy service provider,
Enterprise Products Partners L.P.
) announced expansion plans for its LPG export terminal located
on the Houston Ship Channel.
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The partnership intends to boost the capacity of its LPG export
terminal by additional 1.5 million barrels (MMBbls), or three
cargoes per month. This will enhance the total refrigeration
capacity and increase the total design capacity to about 9 MMbbls
per month. The project is scheduled for completion in the first
quarter of 2015.
In March 2013, the partnership completed the expansion of its LPG
export terminal, augmenting propane loading capacity to about 7.5
MMBbls per month from 4 MMBbls. The facility has been
outperforming since its inception and is currently loading over
8.0 MMBbls per month of fully-refrigerated, low-ethane propane.
The terminal is expected to continue performing above
expectations at the new levels as natural gas liquids (NGL) yield
grows from domestic shale plays and propane requirement increases
as a feedstock for global ethylene crackers.
Enterprise Products Partners, a leading master limited
partnership (MLP), is engaged in providing a wide range of
midstream energy services to producers and consumers of natural
gas, NGL and crude oil.
The partnership's assets include 50,200 miles of onshore and
offshore pipelines, approximately 192 million barrels of storage
capacity for NGLs, refined products and crude oil, and 27 billion
cubic feet of natural gas storage capacity.
Enterprise Products Partners is considered a core holding in an
MLP portfolio, given its string of organic growth projects,
potential acquisitions, strong balance sheet and solid liquidity
position. The partnership is one of the largest fully integrated
midstream service providers with a positive long-term outlook
given its significant geographic and business diversity.
Enterprise Products Partners carries a Zacks Rank #3 (Hold).
However, Zacks Ranked #1 (Strong Buy) stocks -
China Petroleum & Chemical Corp.
Stone Energy Corp.
) - are good buying options for the short term.