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30-01-2017

Enterprise to build isobutane dehydrogenation unit

Enterprise Products Partners L.P.today announced plans to construct a new isobutane dehydrogenation unit in Mont Belvieu, Texas that will have the capability to produce 425,000 tons per year of isobutylene. The project, which is supported by long-term contracts with investment-grade customers, is expected to be completed in the fourth quarter of 2019. The isobutylene produced by the plant will provide the necessary feedstock to fill underutilized capacity at Enterprise’s existing downstream octane enhancement and petrochemical facilities.

“The construction of this new iBDH plant will extend our butane value chain and allow full utilization of our existing olefins assets,” said A.J. “Jim” Teague, chief executive officer of Enterprise’s general partner. “In developing this project, we are leveraging Enterprise’s extensive integrated midstream network to turn a plentiful, cost-advantaged natural gas liquid into a higher-valued product.”

Historically, steam crackers and refineries have been the major source of propane and butane olefins for downstream use. However, with the increased use of light-end feedstocks, specifically ethane, the need for on-purpose olefins has increased. Much like Enterprise’s propane dehydrogenation unit, currently scheduled for start of operations in the second quarter of 2017, the iBDH unit will help meet market demand where supplies have been reduced. The new iBDH plant will increase Enterprise’s production of both high purity and low purity isobutylene to be used primarily as feedstock to manufacture lubricants, rubber products and alkylate for gasoline blendstock, as well as MTBE for export.

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