Demand for propylene has grown an average 5.7 percent pa. since 1999 and is projected to continue to grow at that rate through 2008 according to CMAI. In line with this estimated growth, Enterprise Products Partners L.P.'s operating subsidiary plans to make additional investments to expand its integrated network of petrochemical assets in Mont Belvieu and southeast Texas. These investments to the tune of US$205 million are a part of our previously announced growth capital budget for 2006. The investments will go towards construction of a new propylene fractionator at its Mont Belvieu complex that will increase Enterprise's propylene/propane fractionation capacity by one billion pounds pa (15,000 MBPD) and expansion of two refinery grade propylene gathering pipelines that will add 50 MBPD of gathering capacity into Mont Belvieu. The total investment in the new propylene fractionator and pipeline expansions, which are expected to be operational by late 2007, with approximately $130 million of the total targeted for the new fractionator and associated storage and handling improvements.
Enterprise currently operates 3 propylene fractionators at Mont Belvieu with a net capacity to produce 58 MBPD of polymer grade propylene. Polymer grade propylene is 99.5 percent pure propylene and is used in the production of plastic consumer products, pharmaceuticals, detergents and solvents.
Enterprise recently completed the acquisition of a 66-mile, 8-inch pipeline that will transport propylene from the large crude oil refining facilities located along the upper Texas Gulf Coast in the Port Arthur/Groves area to Mont Belvieu. Enterprise has executed a 20-year transportation contract with Total Petrochemicals U.S.A., Inc. and will initially connect with their refinery and another refinery in this region. Enterprise also completed the extension of its refinery grade propylene gathering pipeline to interconnect with two crude oil refiners in Texas city area.
24-Mar-06 
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