Pipeline giants Enterprise Products and Energy Transfer consider chemicals business

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The potential projects, worth well over $10 billion combined, would help answer soaring...

The potential projects would help answer soaring global demand for ethylene, the molecule that drives the chemical industry.Two of the nation’s largest pipeline companies are planning projects that would expand their businesses into petrochemical manufacturing.

The potential projects would help meet soaring global demand for ethylene. Chemical-makers buy ethylene to make compounds such as polyethylene, a basic plastic used in packaging, and polyvinyl chloride, or PVC, polymers used in everything from construction to consumer electronics.For pipeline companies, ethylene production is “a natural next step,” analysts said.

“The way people live now,” he said, “there’s more demand for flexible packaging, which all comes from ethylene.” Enterprise is proposing a $5.25 billion ethylene plant at its Mont Belvieu complex in Chambers County. The unit would have the capacity to produce 2,000 kilotons per year of ethylene. At that facility it also plans to build a $1 billion unit that processes ethylene into polymer-grade propylene, which is used to make plastics and fibers.Enterprise also plans to build a $5.25 billion ethylene production facility at its Beaumont Marine East property along the Neches River in Orange County.

 

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