Update from Mont Belvieu: Extended Pipelines, Continued Construction on New Plant

A fuel truck loading up in Mont Belvieu. (image: envirocompanies.com)

It’s been awhile since we’ve heard any news from Mont Belvieu, Texas, home of the country’s biggest propane hub and storage facility. Since the town consistently defines pricing and trends for propane nationwide, we checked in! Here’s the skinny:

Late last month, Enterprise Products Partners LP began construction of a new NGL fractionation facility in Mont Belvieu that will allow the company to fractionate more than 450, 000 barrels of natural gas liquids every day. Administrators reported that construction is on schedule and going well. It’ll be Enterprise’s third such power plant built in Mont Belvieu in the past two years, a sign that production from the Eagle Ford Shale is still consistently high.

Across town, Crosstex Energy LP announced plans to expand its NGL fractionation facilities in Eunice by extending its Cajun-Sibon pipeline and connecting to Mont Belvieu’s supply pipelines, Oil & Gas Journal reported yesterday. The $180-220 million project, slated to begin later this year, will increase production capacity in Eunice from 15,000 barrels per day to 55,000. Crosstex officials are optimistic the project will boost the propane industry by improving reliability and diversity of supplies to markets across Louisiana.