Enterprise Products Partners has announced that one of its affiliates has executed a long-term agreement with Japan’s Marubeni Corp. to supply polymer-grade propylene (PGP) from the partnership’s second propane dehydrogenation plant, Kallanish Energy reports.
The PDH 2 plant is under construction at Enterprise’s complex near Mont Belvieu, Texas.
It is expected to begin service in the third quarter of 2023.
It will be capable of upgrading 35,000 barrels per day of propane into 25,000 barrels per day of PGP. That is equal to 1.65 billion pounds per year of propylene, Enterprise said.
Upon completion, Enterprise will have a total capacity to produce up to 11 billion pounds per year of PGP in what would be the largest propylene production complex in the world, it said in a statement.
The Mont Belvieu complex is capable of producing 8 billion pounds per year of propylene from its seven propylene fractionators and 3 billion pounds per year from its two propane dehydrogenation facilities.
These plants, using two processes, provide operational flexibility and reliability, the company said.
Marubeni Corp. is a major Japanese integrated trading and investment conglomerate and the world’s largest olefins trader.
“We are very pleased to expand our relationship with one of the world’s premier providers of olefins logistics service for the petrochemical industry,” said A.J. Teague, co-chief executive officer of Enterprise’s general partner.
“Reliable production of PGP from our new PDH 2 facility complements our current export business with Marubeni and extends our integrated midstream network to meet the needs of their customers around the globe,” he said.
Enterprise’ PGP network includes more than 300 miles of delivery pipelines, 26 PGP connections, more than 5 million barrels of storage capacity, and an export terminal on the Houston Ship Channel in Texas.
PGP is a primary petrochemical that has global demand as feedstock to produce hundreds of consumer, medical and industrial products.