Enterprise weighs USGC ethylene export project

OREANDA-NEWS. March 15, 2016. Enterprise Products Partners is evaluating a US Gulf coast ethylene export project, the company said today.

The company predicts that the ongoing 40pc expansion in ethylene production in the US will result in an oversupplied market despite downstream derivative capacity expansions.

Asian demand for ethylene continues to grow beyond local production, the company said in a presentation. Asia is looking to diversify its supply with stable shale-advantaged pricing.

"Domestic producers need to reach global markets, otherwise the operating capacity of US crackers will be reduced as new builds are completed," Enterprise said.

Enterprise said it would repurpose storage caverns capable of the necessary delivery rate for ethylene.