Enterprise Products to build LPG export terminal on U.S. Gulf Coast

Wed Oct 2, 2013 8:59am EDT

Oct 2 (Reuters) - Enterprise Products Partners said it would build a liquefied petroleum gas (LPG) export terminal on the U.S. Gulf Coast to cater to increased demand for propane and butane from international customers.

The terminal, which will handle up to very large gas carriers, is expected to become operational by the fourth quarter of 2015, the distribution and pipeline company said in a statement.

Enterprise Products said the new terminal is expected to have an initial capacity to load 6.0-6.5 million barrels of propane or butane per month.

U.S. propane production from shale gas surged last year, but a lack of export infrastructure kept most of the output in the domestic market, pushing U.S. prices well below international levels.

U.S. exports of LPG have surged this year as companies start setting up export infrastructure.

Propane exports from the United States are set to double by the end of the year and match those of Saudi Arabia, the third largest LPG exporter after Qatar and the United Arab Emirates.

Enterprise Products said last week that it would expand its LPG export terminal in the Houston Ship Channel.

The company said its LPG marine terminals would have total capacity to load 15-16 million barrels of low-ethane propane or butane per month after the Houston Channel expansion and the new terminal are complete.

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