The sector is abuzz with project plans and capacity expansions, writes Abby Downing-Beaver
US midstream companies plan to further expand natural gas liquids (NGLs) export capacity in the country to support increasing production and global demand.
Dallas-based Energy Transfer intends to add 250,000 b/d of LPG and ethane export capacity at its 700,000 b/d Nederland terminal in Texas on the US Gulf coast by mid-2025. A final investment decision (FID) has been reached for the $1.25bn project following record exports from Nederland and Energy Transfer's Marcus Hook terminal in Pennsylvania on the east coast during the first quarter, the firm says. Marcus Hook can export around 260,000 b/d of LPG but not ethane.
Energy Transfer shipped more than 14mn bl (791,000t) of ethane from Nederland in January-March, most of which under its term contract with China's Satellite Petrochemical, driving its overall increase in NGL exports. "We've pretty much maxed out what we can do right now with our facilities," chief executive Marshall McCrea says. The firm has secured several long-term contracts for the planned expansion and is in negotiations for the remaining capacity. Works to enable ethane exports from Marcus Hook by adding refrigeration and storage capacity are also under way, and further expansions at the terminal are under consideration.
Houston-based Enterprise Products has signed new term contracts to export 240,000 b/d of ethane from its expanded Morgan's Point terminal in Texas and a facility under construction near Beaumont, Texas. Morgan's Point can ship 240,000 b/d of ethane and 60,000 b/d of ethylene, and the Beaumont terminal will be able to export 120,000 b/d of ethane. Enterprise is also pushing ahead with a project to add refrigeration at its 883,000 b/d Houston LPG terminal, which will increase LPG export capacity by 120,000 b/d by the first half of 2025. The company's ethane exports rose by 24pc on the year to 200,000 b/d in the first quarter, while LPG shipments from its Houston facility rose by 28pc to 824,000 b/d.
Houston-based Targa Resources' LPG exports from its Galena Park terminal in Houston grew by 10pc to 373,000 b/d in the first quarter. The company's plans to add 1mn bl/month of propane export capacity at the facility, taking its total capacity to over 400,000 b/d, are on track to be completed this summer. Exports should reach a record high this year and Targa is evaluating making further expansions at Galena Park, chief executive Matthew Meloy says.
The company is also expanding its NGL fractionation company in a bid to avoid future supply shortages as natural gas and associated NGL production in the Permian basin spanning southern US states continues to increase. It plans to build a 120,000 b/d NGL fractionator at its Mont Belvieu, Texas, complex that is due to come on line in the first quarter of 2025. The fractionation train will be Targa's tenth and will follow the same capacity as the ninth that is expected to start up in the second quarter of 2024.
Record Permian intake
Targa's natural gas intake from the Permian basin stood at 4.8bn ft³/d (50bn m³/yr) during the first quarter, a company record, and it is expected to grow further over the course of this year. The increase in natural gas gathering also allowed the firm to boost its fractionation yields and NGL shipments to new highs, rising by 8pc to 758,000 b/d and by 17pc to 536,800 b/d, respectively.
Energy Transfer also posted an increase in fractionation output, rising by 18pc to 949,000 b/d. This has since risen to over 1mn b/d in April, according to the company. The firm is bringing an eighth NGL fractionator on line at Mont Belvieu in the third quarter, raising its total capacity at the Gulf coast hub to 1.15mn b/d. Enterprise's fractionation volumes rose to 1.4mn b/d compared with 1.3mn b/d a year earlier. Total NGL shipments along its pipeline network rose by 11pc to 3.98mn b/d owing to increased natural gas production in the Permian.
| US midstream operators' 1Q results | ||
| 1Q | ±% 1Q22 | |
| Energy Transfer | ||
| Profit $bn | 1.11 | -12 |
| NGL operating margin $bn | 1.20 | 30 |
| Fractionated NGL output mn b/d | 0.95 | 18 |
| NGL pipeline shipments mn b/d | 1.98 | 13 |
| NGL exports mn b/d | 1.34 | 14 |
| Enterprise | ||
| Profit $bn | 1.42 | 7 |
| NGL operating margin $bn | 1.21 | -1 |
| Fractionated NGL output mn b/d | 1.37 | 4 |
| NGL pipeline shipments mn b/d | 3.98 | 11 |
| NGL exports mn b/d | 0.82 | 28 |
| Targa | ||
| Profit $bn | 0.50 | 465 |
| NGL operating margin $bn | 0.53 | 50 |
| Fractionated NGL output mn b/d | 0.76 | 8 |
| NGL pipeline shipments mn b/d | 0.54 | 17 |
| NGL exports mn b/d | 0.37 | 10 |
