Port Bureau Updates-July

Enterprise Announces Additional Expansion Projects at Houston Ship Channel Terminal

Enterprise Products (“Enterprise”) has announced three additional expansion projects that will increase the partnership’s capacity to load liquefied petroleum gas (“LPG”), polymer grade propylene (“PGP”) and crude oil from its Enterprise Hydrocarbon Terminal (“EHT”) on the Houston Ship Channel.

Currently, Enterprise’s nameplate LPG loading capacity is approximately 660,000 barrels per day (“BPD”). The additional projects announced will increase incremental LPG loading capacity by another 260,000 BPD and are expected to be in service in the third quarter of 2020. When completed, the projects will give EHT nameplate capacity to load up to almost 1.1 million BPD of LPG, or approximately 33 million barrels per month.

In response to record demand for PGP by international markets, the partnership is adding refrigeration facilities at its Houston Ship Channel terminal that will enable Enterprise to load up to an incremental 67,200 BPD, or approximately 2 million barrels per month, of fully refrigerated PGP. With this expansion project, Enterprise will increase flexibility by offering customers the capability to co-load fully refrigerated PGP and LPG onto the same vessel.

As part of the expansion, Enterprise is also building an eighth dock at its Houston Ship Channel terminal with the capability to load approximately 840,000 BPD of crude oil, increasing the partnership’s nameplate export capacity for crude oil at the Houston Ship Channel to 2.75 million BPD, or nearly 83 million barrels per month.

“We are pleased to announce this additional investment in our Houston Ship Channel marine terminals,” said A.J. “Jim” Teague, chief executive officer of Enterprise’s general partner. “In total these expansions will enable us to load an incremental 1.3 million BPD of LPG, polymer grade propylene and crude oil. A key driver and catalyst to make these additional investments in our Houston Ship Channel complex is clarity and certainty provided by recent legislation signed into law by Governor Abbott that ensures two-way traffic along the Houston Ship Channel.”

Chevron Phillips, Qatar Petroleum Sign $8 Billion Deal to Develop Petrochemical Plant Along the US Gulf Coast

Chevron Phillips Chemical and Qatar Petroleum signed an agreement on July 9, 2019, to develop an $8 billion petrochemical plant along the U.S. Gulf Coast, the second pact between the companies to build such plants in the last few weeks. Chevron Phillips hasn’t named the location for the new plant. The company previously has confirmed it is considering Orange and Sweeny as sites for a potential expansion, among other locations in Texas and Louisiana.

The U.S. Gulf Coast II Petrochemical Project will include a 2,000 kilotons per year (KTA) ethylene cracker and two 1,000 KTA polyethylene units. The plant will mostly make hard plastics for everything from pill bottles to coolers to kayaks.

Chevron Phillips Chemical, a joint venture of Chevron and Phillips 66, will be the majority owner with a 51 percent share, with Qatar Petroleum owning 49 percent of the project. The companies expect a final investment decision no later than 2021 for the project, which has a target of starting in 2024.

Mark Lashier, chief executive and president of Chevron Phillips Chemical, said the plants would help fill demand for plastics from an expanding global middle class, which is expected to grow by about 160 million people per year for at least the next decade.

Last month the companies announced they would build a petrochemical plant north of Doha in Ras Laffan Industrial City that will come on line by 2025 and tap Qatar’s North Field for natural gas feedstock.

In February, Qatar Petroleum and Exxon Mobil Corp said they are investing in a $10 billion project to expand an LNG export plant in Texas, as companies race to meet global demand for the fuel.


INEOS Oxide Announces Chocolate Bayou, Texas for its New Ethylene Oxide (EO) Investment in the USA

INEOS Oxide announced a new 1.2 billion lb (circa 520 kt) Ethylene Oxide (EO) unit and associated downstream Ethylene Oxide Derivatives (EOD) will be built at INEOS’ Chocolate Bayou manufacturing works south of Houston on the Gulf of Mexico coast. Ethylene oxide is used to make ethylene glycol, which is used to make polyester fiber for clothes, upholstery, carpet and pillows and the blending of automotive engine antifreeze.

Chocolate Bayou is currently host to two Olefins crackers, two Polypropylene units and two Cogen facilities operated by INEOS O&P USA. A new Linear Alpha Olefins unit and associated downstream Poly Alpha Olefins unit are also currently under construction at the site by INEOS Oligomers.

The selection of Chocolate Bayou to host the new EO & EOD facility will reinforce on-site integration to the benefit of both the crackers and the derivative assets. INEOS also is considering an $803 million expansion at its La Porte chemical plant.

Bludworth Marine Relocates Headquarters to Galveston

Bludworth Marine, LLC relocated their corporate headquarters to Galveston, Texas, on June 1, 2019. The new location, at 320 77th Street is minutes from the Bludworth Marine 100’ x 300’ graving dock and the Port of Galveston Pier 38 dockside. This proximity allows quicker response and service to the continually increasing marine repair service business in Galveston and surrounding areas. The new 3.5-acre site also includes a 75’ x 150’ high bay fabrication shop with a 10-ton overhead crane, a complete machine shop full blast and paint building, a carpenter’s workshop, and outside machinist shops for rotating equipment and pump repairs. The company’s new address is 320 77th Street, Galveston, Texas 77554.

The company manages multiple marine repair locations in Galveston and Orange, Texas.Bludworth Marine offers a full range of services from their turnkey shipyards with docking capabilities to topside repairs on ships and ocean floating equipment. U.S. Gulf and worldwide services can be provided through their mobile crews. They also owns the Bludworth ATB flexible pushing system design and is the U.S. sales and service representative for the Japanese Taisei Engineering Articouple ATB systems.

LyondellBasell Names Ken Lane Executive Vice President, Global Olefins & Polyolefins

LyondellBasell, one of the largest plastics, chemicals and refining companies in the world, announced in July, Kenneth (Ken) Lane will assume the role of executive vice president, Global Olefins & Polyolefins (O&P). Lane will have responsibility for the O&P Americas and O&P Europe Asia International (EAI) segments, reporting to Chief Executive Officer Bob Patel.

“Ken brings a unique perspective and set of skills to the table. He has worked around the globe and gained valuable experience in all facets of our business including manufacturing, marketing, mergers and acquisitions, profit and loss management and strategy,” said Patel.

Prior to joining LyondellBasell, Lane held a variety of positions with BASF, including president of the Monomers Division and president of BASF Catalysts. Before BASF, Lane also held a number of positions with BP Chemicals. Lane earned a Bachelor of Science in civil engineering from Clemson University and a Master of Science in management from the University of Alabama. Lane will be based in Houston, Texas.


Schlosser Volunteers to “Kiss the Pig”.

John Schlosser
Kinder Morgan Terminals

Insulin from cattle and pigs was used for many years to treat diabetes and saved millions of lives, but it wasn’t perfect, as it caused allergic reactions in many patients. The first genetically engineered, synthetic “human” insulin was produced in 1978 using (E. coli) bacteria to produce the insulin. Port Bureau Board member John Schlosser, president, Kinder Morgan Terminals, is participating in the American Diabetes Association’s “Kiss a Pig” program to raise funding for diabetes research and programs. By the way, he’ll kiss an actual pig!

USACE Galveston District External Project Review Board (PRB) and Bi-Annual Stakeholder Partnering Forum Slated for August 13-14

The External Project Review Board (PRB) and Bi-Annual Stakeholder Partnering Forum of the USACE, Galveston District (SWG) will be held August 13-14 at the Aggie Special Events Center, Texas A&M University, Galveston. The forum will focus on “Leveraging Civil Works Opportunities to Drive the Dominance of America’s Energy Coast”.

On August 13, the External Stakeholder PRB forum will be held revising the active district studies and projects, providing information and opportunity to interact on current status, issues, and management actions being advanced to deliver on commitments. Non-federal sponsors will provide insight on the progress of partnered work with the USACE. An optional self-pay social will be held that evening at the Galvez Hotel.

The Bi-Annual Stakeholder Partnering Forum will be held on August 14 that will include special topic seminars, study/project poster exhibit, and networking. Participation is encouraged to keep updated on the progress and the future portfolio of the “Civil Works and Bipartisan Budget Act of 2018” studies/projectsat SWG across the navigation, flood risk management, and ecosystem restoration business lines.

For additional details and information about the USACOE forum, please contact the Greater Houston Port Bureau at info@tsgulf.org or call (713) 678-4300.

  • Date July 25, 2019
  • Tags 2019 July