A leading master limited partnership (MLP), Enterprise Products Partners, L.P. (EPD) announced that it is developing two refined product export facilities to accommodate the growing demand for refined products export on the United States Gulf Coast.
The existing Southern Complex of refined products pipeline, storage and terminal facilities in southeast Texas will be utilized by Enterprise for development. This in turn will provide better access to its marine facilities in Beaumont, Texas, and on the Houston Ship Channel.
The revived Beaumont marine terminal, scheduled to be commissioned in the first quarter of 2014, will initially manage Panamax size vessels. Subsequently, its expanded marine terminal on the Houston Ship Channel will be initially equipped by mid-2014 to manage up to Aframax class vessels.
Traditionally, Enterprise’s Southern Complex has been a feeder system for the Enterprise TE Products Pipeline system, which transports refined products to the Midwest.
Enterprise has been repositioning its Southern Complex, over the last one year to facilitate enhanced supply and market access, system flexibility and capacity. As a result, storage capacity at the partnership’s Southern Complex facilities has more than doubled to about 12 million barrels.
The other alterations made at the facility including vital pipeline segments serving major refining centers have been made bi-directional, and new interconnects provide access to key third party interstate pipeline systems.
The Southern Complex is directly linked to receive refined products from the Colonial Pipeline and 10 refineries in southeast Texas, signifying a daily refining capacity of 3.3 million barrels. Further, the Southern Complex provides connectivity to three interstate pipelines and one intrastate pipeline. With these advantages, its customers get increased flow assurance and market choices.
Enterprise holds a Zacks #2 (Buy). However, there are other Zacks Ranked #1 (Strong Buy) stocks – Enerplus Corporation (ERF), Gulfmark Offshore, Inc. (GLF) and Newpark Resources Inc. (NR) – which appear more attractive as these are expected to outperform over the next few months.
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