OREANDA-NEWS. Enterprise Products Partners' propane dehydrogenation (PDH) facility faces further delays and is now expected to be completed in the first quarter of 2017, with commercial operations to begin during the second quarter, the Houston-based partnership disclosed in its annual filing with securities regulators.

Enterprise previously expected the 1.65bn lb/yr PDH unit to come online by the end of this year. The delay comes as declines in overall commodity prices push prices for polymer grade propylene (PGP) lower, narrowing margins. US PGP averaged 27.3?/lb in February, down from 48.6?/lb during the same month in 2015. PGP prices currently stand at a 17.19?/lb premium to propane, down from a 32?/lb premium a year ago.

Enterprise's unit will consume about 35,000 b/d of propane, according to the company. Delays to Enterprise's project follow Williams' recent disclosure that it will postpone work on its proposed PDH unit in Alberta pending the completion of its merger with Energy Transfer Partners.