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Enterprise (EPD) Inks New Contracts for LPG Export Capacity

Enterprise Products Partners L.P.EPD declared that it has inked additional long-term contracts with customers that will enable exportation of about 125 million aggregate barrels of liquefied petroleum gas (LPG).

The exports will be made from the partnership's terminal along the Houston Ship Channel over a seven-year period. Currently, Enterprise Products Partners' LPG export facility is subscribed by more than 90%, in terms of estimated operating capacity, through 2019. This includes the volume related to these agreements.

Enterprise Products Partners is on the verge of completing a series of expansions at the terminal that are intended to accommodate the increasing demand for export capacity. During the first quarter of 2015, the company augmented its loading rate to over 16,000 barrels per hour (BPH) or 9 million barrels (MMBbls) per month.

By the end of this year, Enterprise anticipates conclusion of the final phase, which will augment loading rates at the terminal to over 27,000 BPH. On completion of the final expansion phase, Enterprise Products Partners will have the capacity to load about 16 MMBbls per month of LPG, which is equal to approximately 29 vessels per month.

The export terminal becomes even more lucrative to customers as most of its capacity is under contract till 2022.

Enterprise Products Partners is a leading master limited partnership (MLP), engaged in the provision a wide range of midstream energy services to producers and consumers of natural gas, natural gas liquids (NGL), and crude oil. The partnership's assets include about 49,000 miles of pipelines, 225 million barrels of storage capacity for NGLs, crude oil, refined products and petrochemicals and 14 billion cubic feet of natural gas storage capacity.

We continue to view Enterprise Products Partners as 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 holds a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are Energy Transfer Equity, L.P. ETE , Matrix Service Company MTRX and Seadrill Partners L.P SDLP . Each of these stocks sports a Zacks Rank #1 (Strong Buy).

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ENTERPRISE PROD (EPD): Free Stock Analysis Report

MATRIX SERVICE (MTRX): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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