Propylene Fractionation
Enterprise provides propylene fractionation, storage, transportation and export services to the petrochemical industry. Propylene is used in the production of plastic consumer products, pharmaceuticals, detergents and solvents. The two primary sources of polymer grade propylene are from ethylene steam crackers and from fractionators that separate propane/propylene mixes produced as a byproduct of crude oil refining. Projected growth in ethylene steam cracking capacity will not meet the expected demand for propylene. We believe propylene demand growth will be met primarily by fractionating refinery-sourced propane/propylene mixes.
Enterprise has been in the propylene fractionation business since 1978. We have ownership interests in five propylene fractionation plants that are connected to an extensive network of pipeline transportation, storage and import/export facilities, in Texas and Louisiana, providing our customers with operational flexibility. Four of these plants are located in Mont Belvieu and have a combined net capacity to produce 4.8 billion pounds per year of polymer grade propylene.
Polymer grade propylene is at least 99.5% pure propylene and is produced by fractionating chemical grade propylene or refinery grade propylene.
In addition to the three polymer grade propylene plants we own at Mont Belvieu, Enterprise also operates and owns a 30% interest in a chemical grade propylene fractionator as part of a joint venture with ExxonMobil Chemical near Baton Rouge, Louisiana. Enterprise designed, constructed and operates the plant and ExxonMobil supplies the feedstock to the facility and is the major customer for the end product. This fractionation facility has a gross capacity to produce 1.5 billion pounds of chemical grade propylene.
As demand for propylene increases driven by overall economic growth, we believe our partnership will benefit from higher utilization rates and fees from our existing facilities and opportunities to construct new facilities supported by long-term contracts with existing, as well as new customers.
Propylene Fractionation Facilities
| Facility | Ownership Interest at December 31, 2007 | Gross Capacity (MBPD) | Net Capacity (MBPD) | |
| Mont Belvieu, TX: (4 plants) | ||||
| Polymer Grade | Various(1) | 87 | 73 | |
| Baton Rouge, LA: | ||||
| Chemical Grade | 30.0% (2) | 23 | 7 | |
| Total Capacity | 110 | 80 | ||
(1) Enterprise owns a 54.6% interest and lease the remaining 45.4% of a facility having 17 MBPD of plant capacity. We own a 66.7% interest in a second facility having 41 MBPD of total plant capacity. We own 100% of the remaining two facilities, which have 14 MBPD and 15 MBPD of plant capacity, respectively.
(2) Our interest in this facility is held indirectly through our equity method investment in Baton Rouge Propylene Concentrator LLC ("BRPC").