Enterprise Products is expanding its wholly-owned Aegis ethane pipeline along the US Gulf Coast following strong interest from shippers, the company said on Monday.
Long-term agreements have been executed, which support increasing the size of the Aegis pipeline to 20-inches in diameter, which will facilitate delivery of up to 425,000 bpd of ethane to the expanding petrochemical corridor along the Gulf Coast.
The 270-mile Aegis pipeline will originate at Enterprises liquids storage complex in Mont Belvieu, Texas, and, through connections to other Enterprise-owned pipelines, deliver purity ethane to ethylene production facilities between Beaumont, Texas and Napoleonville, Louisiana.
Aegis will commence service in phases, with initial deliveries expected to begin during the second quarter of 2014.
Interest continues to build as shippers recognize the value Aegis offers through enhanced flexibility, supply diversification and market access, said A.J. Jim Teague, chief operating officer of Enterprises general partner. As an extension of our midstream network that features access to 100 million barrels of storage capacity at our Mont Belvieu complex, the Aegis pipeline system offers a complete and integrated solution for meeting the needs of both producers and consumers of growing domestic supplies of ethane.
"Together, Aegis and our South Texas ethane pipeline enable Enterprise to provide ethylene facilities from Corpus Christi to the Mississippi River with reliable supplies of ethane through a header system anchored by our Mont Belvieu complex," he added.
To accommodate this additional shipper interest, Enterprise is conducting a supplemental open season that began Monday morning and will close on November 14. Service is being offered in this supplemental open season under substantially similar terms and conditions as previously offered