After a rocky first quarter for new construction, the strength of the U.S. midstream sector is reasserting itself as a few key players announced sizeable projects in the Lone Star State.

Enterprise Products Partners LP’s list of Texas projects stands out particularly for the second quarter, with Hinds Howard of CBRE Clarion Securities stating in a recent “MLP Market Update” that the company is “showing its ability to leverage its unparalleled footprint to source projects.”
During an earnings call, Enterprise COO Jim Teague discussed the recent open season for the Aegis Pipeline expansion for installation of additional mainline pumps.“This open season recognizes the fact that we continue to work with new project sponsors on connections and extensions to Aegis and long-term supply arrangements,” he said. The ethane pipeline runs from Mont Belvieu, Texas, to Napoleonville, La., and is expected to begin operations in mid-2016.
The partnership has also focused expansion efforts on its LPG export capabilities. Enterprise completed an expansion at its hydrocarbons terminal on the Houston Ship Channel to increase its incremental loading capacity by about 1.5 million barrels (MMbbl) per month, and has further plans to increase capacity by almost double during the year, to 16 MMbbl a month, Teague said.
Enterprise also announced a joint venture with Occidental Petroleum Corp. for a $150 million cryogenic processing plant in the West Texas Delaware Basin. The plant will have a capacity of 150 million cubic feet per day and is expected to enter service in mid-2016. During the call, Teague said the plant appealed to Enterprise as a way to bolster its presence in the Delaware Basin, as well as its ability to offer customers access to the Mont Belvieu NGL hub via Enterprise assets.
On the crude oil side, Enterprise said it plans to offer a crude oil and condensate pipeline from Midland, Texas, to Houston, as the company remains “very positive about the potential for significant processed condensate exports.”
“Opportunity knocks every day in our business,” he said. “In a volatile environment like we’re in today, opportunity still knocks; it’s just a different opportunity than what we saw this time last year.”

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