Enterprise ‘sells out’ propane dehydrogenation facility

HOUSTON, US: Enterprise Products Partners LP has executed long-term, fee-based agreements that effectively ‘sell out’ the partnership’s 1.65 billion pounds per year propane dehydrogenation (PDH) facility that is scheduled to begin operations in the third quarter of 2015. In anticipation of a continuing decrease in supplies of propylene, Enterprise is having ongoing discussions with additional customers that could lead to the development of additional PDH capacity.

“We had very strong customer demand for the remaining capacity in our PDH unit. This demand is being driven by the combination of a 38 per cent decrease in propylene supplies since 2006 due to additional ethane consumption by US petrochemical companies and the growing supplies of domestic propane from the US shale plays. We are continuing our discussions with several customers that could lead to a second PDH unit or additional propylene manufacturing capacity,” said AJ Jim Teague, Executive Vice President and Chief Operating Officer, Enterprise’s general partner.

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