Enterprise Products Partners will extend its ethylene pipeline and logistics system further into South Texas, a leading growth area for new crackers and ethylene derivative plants.
The Baymark Pipeline will originate in southeast Harris County, Texas, extending about 90 miles to Markham, Texas. in Matagorda County. The pipeline, supported by long-term commitments, is expected to go in service during the fourth quarter of 2020.
The project is a joint venture between Enterprise and Lavaca Pipe Line Company, a subsidiary of Formosa Plastics Corporation, U.S.A. Enterprise will be the majority owner, operator and commercial manager for the new pipeline.
“The U.S. petrochemical industry is experiencing unprecedented growth with production of ethylene expected to exceed 100 billion pounds per year by 2025,” said A.J. “Jim” Teague, CEO of Enterprise’s general partner.
The pipeline increases the company’s access to the storage hub in at Mont Belvieu. Enterprise is repurposing its Mont Belvieu complex, as well as connectivity to the ethylene export terminal currently under construction at Morgan’s Point.
The storage well is expected to be completed in the third quarter of 2019 and have a capacity of 600 million pounds. The terminal will have the capacity to export 2.2 billion pounds of ethylene per year and is on schedule to begin service in the fourth quarter of 2019.