May 2017 Commerce Club
By Judith Schultz, GHPB
Anthony C. Chovanec, Senior Vice President-Fundamentals, Enterprise Products Partners L.P., was the featured speaker at the Port Bureau’s Commerce Club luncheon at Brady’s Landing on May 11, 2017. Chovanec included a slide presentation with his remarks entitled, “Preparing To Export Virtually Everything We Touch”.
Chovanec started his presentation with a brief overview of market fundamentals for liquid hydrocarbons and natural gas. Emerging markets, particularly in Asia, are projected to dominate liquid hydrocarbon demand growth through 2040, with demand growth in those markets exceeding the decline in demand from developed nations. At the same time, U.S. gas to crude ratios from unconventional production, namely shale, are globally competitive and enable petrochemical manufacturing.
Using these points as a springboard, Chovanec shared Enterprise activities in the Houston area with attendees, stating, “We are heavily invested in the Houston Ship Channel…It’s very strategic, very important to us.” He emphasized operations at the “best in class” Houston Ship Channel Terminal, the world’s largest ethane export terminal at Morgan’s Point, and their Mont Belvieu plant complex. Enterprise purchased 1,729 acres in 2011 in Mont Belvieu for expansion of process plants and brine capacity. “Mont Belvieu is connected to markets by a spaghetti bowl of pipelines,” said Chovanec, adding later in his talk that Enterprise is connected to every ethane terminal in the U.S.
Enterprise’s natural gas flow patterns historically flowed from south to north. “Now, with so much production,” said Chovanec showing a map of their natural gas forecasted flow patterns through 2022, “we had to take the grid and turn it on its head!” It is projected that new capacity will be needed to satisfy future natural gas demand in South Texas.
Concluding his presentation, Chovanec stressed the importance of their terminal facilities at the Houston Ship Channel, Beaumont, Seaway Freeport, and Seaway Texas City. Enterprises’ integrated network of midstream energy assets is well positioned to benefit from the expected growth in both the production and demand for crude oil.
The Q&A session focused primarily on LNG production, competition, and market opportunities. Chovanec particularly noted that while shale reserves are available around the world, other nations lack the ready infrastructure of U.S. “No other countries have what we have,” he concluded.
Editor’s Note: David Grzebinski, President & CEO of Kirby Corporation, will be the guest speaker for the Commerce Club on July 13, 2017. Individual seats and table sponsorships are available. Reserve your seat at www.txgulf.org/commerce-club or by calling (713) 678-4300.
- Date June 5, 2017
- Tags June 2017