Enterprise Products Partners L.P. announced plans to construct a new isobutane dehydrogenation (“iBDH”) unit in Mont Belvieu, Texas that will have the capability to produce 425,000 tons per year of isobutylene. The project, which is supported by long-term contracts with investment-grade customers, is expected to be completed in the fourth quarter of 2019. The isobutylene produced by the plant will provide the necessary feedstock to fill underutilized capacity at Enterprise’s existing downstream octane enhancement and petrochemical facilities.

The new iBDH plant will increase Enterprise’s production of both high purity and low purity isobutylene to be used primarily as feedstock to manufacture lubricants, rubber products and alkylate for gasoline blendstock, as well as MTBE for export. Isobutylene is a building block for polyisobutylene (PIB), which is primarily used in products such as fuel and lube additives, and as viscosity modifiers. These products are used in two-stroke motor oils and other engine oils, often as a bright stock replacement or supplement, as well as in gear oils and metalworking fluids.

“The construction of this new iBDH plant will extend our butane value chain and allow full utilization of our existing olefins assets,” said A.J. “Jim” Teague, chief executive officer of Enterprise’s general partner. “In developing this project, we are leveraging Enterprise’s extensive integrated midstream network to turn a plentiful, cost-advantaged natural gas liquid into a higher-valued product.”

Historically, steam crackers and refineries have been the major source of propane and butane olefins for downstream use. However, with the increased use of light-end feedstocks, specifically ethane, the need for on-purpose olefins has increased. Much like Enterprise’s propane dehydrogenation unit, currently scheduled for start of operations in the second quarter of 2017, the iBDH unit will help meet market demand where supplies have been reduced.

Enterprise Products Partners is one of the leading North American providers of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. The company's services include: natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage and import and export terminals; crude oil gathering, transportation, storage and terminals; petrochemical and refined products transportation, storage and terminals; and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems. The partnership’s assets include approximately 49,000 miles of pipelines; 250 million barrels of storage capacity for NGLs, crude oil, refined products and petrochemicals; and 14 billion cubic feet of natural gas storage capacity.