Enterprise Products Partners L.P. (NYSE:EPD) Q2 2019 Earnings Conference Call - Final Transcript
Jul 31, 2019 • 10:00 am ET
A. J. Teague
barrels a day and natural gas pipeline volumes at 14-Bcf a day. In our petrochemical segment, our PDH plant exceeded design for the quarter.
Yesterday, we announced that we had signed transport and terminaling service agreements with Chevron for crude transport from Midland to our ECHO terminal. We also announced that we entered into long-term agreements with Chevron for significant capacity on our spot offshore crude oil terminals, which enabled us to make a financial investment decision to build a terminal subject to government and regulatory approvals. With access to over 6 million barrels a day of crude oil supply, and that's growing, more than 300 million barrels of storage of which nearly 50 million is owned by Enterprise, the VLCC terminal leverages our supply storage and distribution network along the Gulf Coast.
We believe this project provides a solution to US producers, who must have long-term certainty around their ability to competitively access international markets. Earlier in July, we announced three expansions at our Houston Ship Channel Marine Terminal, which will enable us to increase loading capacity of LPG, propylene, and crude oil.
These expansions are on top of the LPG expansion expected online in the third quarter this year. We already provide about 50% of the NGLs exported from the US and roughly 1/3rd of the crude oil and the lion's share of propylene. I think we have shown by these expansion projects that we can and we will add capacity cheaper and faster than most others can build. With integrated systems, the size of ours, there are other fairly low cost add-ons in our future. We completed construction and brought into service $900 million of major growth projects in the second quarter, including the third oil and gas plant and the Midland-to-ECHO 2 crude oil pipeline. We are on schedule to complete construction of $3.2 billion of major growth projects in the second half of this year, including 175,000-barrel per day expansion of our LPG Marine Terminal, the first phase of our ethylene export terminal, our isobutane dehydrogenation facility, a 10th NGL fractionation train, our Mentone 1 natural gas processing plant and our natural gas processing plant in East Texas.
We also continue to make progress in underwriting several additional organic projects, all of which will provide additional sources of cash flow. We are focused on natural gas processing and NGL and crude oil takeaway and on defining what it means to be the US petrochemical midstream provider. I would like to take a couple of minutes and speak specifically to the Houston Ship Channel. In the last 5 years, we have invested over $8 billion around the ship channel. People lose sight of the fact that in spite of our country's massive supply growth, because of shale US and because of shale, US demand for all liquid hydrocarbons except ethane has peaked. Even lower prices in US has proved that you aren't going to stop that trend.
Access to supply is the key to a viable