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Enterprise Products Partners (EPD) and Navigator Gas have signed an letter of intent to develop an ethylene marine export terminal on the Houston Ship Channel.

Enterprise would manage the construction, operations and commercial activities of the terminal, which would be located a[ds_preview]t Enterprise’s Morgan’s Point complex. This facility has a 45-foot draft and includes Enterprise’s ethane marine export terminal, what should be the world’s largest. Navigator Gas has extensive experience with ethylene shipping through its fleet of 14 ethylene-capable vessels that provide a virtual pipeline to deliver ethylene to consuming customers.

The new terminal would be connected to Enterprise’s ethylene salt dome storage and ethylene pipeline system, which is currently under construction. The companies’ ethylene storage facility will have approximately 600 mill. pounds of capacity with an injection/withdrawal rate of 210,000 pounds per hour expandable to 420,000 pounds per hour. The pipeline system will be connected to multiple producers and consumers of ethylene on the U.S. Gulf Coast.

Formation of the 50/50 joint venture to build, own and operate the ethylene marine export terminal is subject to the negotiation and execution of definitive agreements and approval by the respective boards of directors of Enterprise and Navigator Holdings.  The commercialization of the project is subject to sufficient long-term customer commitments.