Enterprise announces new fractionator at Mont Belvieu

HOUSTON — Enterprise Product Partners said Monday it will build a new natural gas liquid fractionator at its complex in Mont Belvieu and has secured the permits for another.

The first fractionator, which takes mixed NGL streams and turns them into products such as ethane, propane, normal butane, isobutane and natural gasoline, will be the ninth at Mont Belvieu when it begins operations as early as January 2016, Enterprise said in a statement.

Rick Rainey, a spokesman for the Houston-based company, said no decisions had been made about whether to construct a now-permitted, tenth fractionator. Rainey added that the company usually obtains permits for its projects ahead of time.

Enterprise did not disclose a price tag for the new fractionator. However, in 2005, the company announced it would be building a similarly sized facility in Hobbs, New Mexico for about $130 million.

Enterprise owns an interest in 15 NGL fractionation facilities in Texas, Louisiana, and Ohio. The Mont Belvieu plant is the largest, with eight fractionators currently operating and a capacity of  about 670,000 barrels per day. When the ninth fractionator is completed, the plant will have a fractionation capacity of 755,000 barrels per day, the company said in its announcement.

In a separate announcement, Enterprise also announced it had completed construction on the first segment of the Aegis pipeline running from Mont Belvieu and Beaumont, Texas. The 60-mile pipeline will deliver ethane, a natural gas liquid, to petrochemical customers, the company said.

The next segment of the Aegis pipeline will stretch from Beaumont to Lake Charles, Louisiana and is scheduled to be completed by the third quarter of 2015. The third and final segment will connect from Lake Charles to the Mississippi River and is expected to be completed by the end of 2015.