Energy Transfer’s massive export terminal in Nederland is exporting record volumes of fuels and chemical feedstocks as the global economy rebounds from coronavirus pandemic and demand for energy and consumer products surge.
The Dallas pipeline company completed expansion products in late 2020 and early 2021 allows it to export more than 700,000 gallons a day of natural gas liquids that are by-products of oil and gas drilling and used as fuels, such as propane, and feedstocks, such as ethane, for plastics and other petrochemicals. Natural gas liquids also include butane, isobutane, and pentane.
The terminal, located about 95 miles east of Houston, is the second largest natural gas liquids export facility in the world, according to Energy Transfer. The terminal, which also includes crude oil storage and pipelines, supplies several Texas refineries including Motiva and Valero in Port Arthur and ExxonMobil’s in Beaumont.
Energy Transfer has a storage capacity of 30 million barrels in Nederland and exports about 2 million to 4 million barrels a day of crude to destinations across the world.
The company’s share of global natural gas liquids exports has doubled over the last 18 months to nearly 20 percent, CEO Kelcy Warren said during the company’s third quarter earnings call. Natural gas liquids can be blended into vehicle fuels.
They are also used as a feedstock for manufacturing, fuel for home cooking and heating. Demand for heating will increase as people try to keep warm during the winter months.
Energy Transfer on Wednesday said it earned a $535 million profit in the third quarter, swinging from a $655 million loss during the same period a year earlier. Revenue increased to $16.7 billion, a 67 percent increase from $10 billion in the third quarter of 2020.
Looking ahead, the company expects total NGL export volumes from Nederland to continue to increase throughout next year. In addition, demand for supply to refineries remains strong and crude oil storage fully contracted.
For more information visit www.energytransfer.com
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