Enterprise Products Partners L.P. announced on Monday that its isobutane dehydrogenation (iBDH) plant in the Mont Belvieu, Texas area recently began service, with volumes expected to continue ramping up during the next two weeks.
The facility, which is supported by long-term, fee-based contracts with investment grade customers, will ultimately have the capability to process approximately 25,000 barrels per day of butane into nearly 1 billion pounds per year of isobutylene.
The iBDH plant will provide the necessary feedstock to enable Enterprise to fully utilize its MTBE and High Purity Isobutylene assets and meet growing market demand for isobutylene. Supplies of isobutylene, which is also a byproduct of ethylene production plants, have decreased as a result of increased use of low-cost, light-end feedstocks, specifically ethane, instead of more expensive crude oil derivatives.
The development of this project leverages Enterprise’s extensive integrated midstream network to turn plentiful, cost-advantaged natural gas liquids (NGLs) into a higher-valued product.
“The completion of the new iBDH facility extends our butane value chain by allowing us to increase production of both high purity and low purity isobutylene to be used primarily as feedstock to manufacture lubricants, rubber products and fuel additives,” said A.J. Jim Teague, chief executive officer of Enterprise’s general partner. “The Oleflex technology and project execution strategy is being utilized on our second propane dehydrogenation plant, which is currently under construction at the same complex and is on schedule for completion in the first half of 2023.”
Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals.