Enterprise Products has received
sufficient transportation commitments to support
development of a new 270-mile pipeline header system that will
deliver ethane to petrochemical plants in the US Gulf
Coast region, the company said Tuesday.
As designed, the Aegis pipeline will originate at
Enterprises liquids storage complex in Mont Belvieu,
Texas, and have the capacity to transport purity ethane to
multiple petrochemical facilities in Texas and
The final design, including capacity and delivery points, will
be determined once any further binding commitments are received
at the conclusion of the projects open commitment
The willingness of shippers to make long-term
commitments provides us with the assurance necessary to build
the midstream infrastructure that will facilitate additional
consumption of domestically produced ethane, said A. J.
Jim Teague, chief operating officer of
Enterprises general partner.
Enterprises Mont Belvieu storage facilities, which have extensive
receipt and delivery capacities for natural gas liquids (NGL),
will support the Aegis pipeline with sufficient and reliable
supplies of ethane," he continued.
"Aegis will provide the distribution network necessary for
producers from basins across the country to access growing
petrochemical demand. Demand for price-advantaged ethane feedstock within the Gulf Coast petrochemical market is over 1
million bpd and continues to increase.
To determine additional shipper interest in the project, Enterprise is conducting an
open commitment period that began Tuesday at 9
a.m. Central time and will close April 9, 2013, at 5
The Aegis project is expected to directly
create approximately 1,500 jobs during construction, according to the
company, which will increase the need for local goods and
services and generate incremental state and local tax revenue.
This is in addition to the jobs generated by the new and
expanded ethylene plants in the US Gulf Coast.
Aegis is expected to begin commercial operations in 2014.