Enterprise Products Partners L.P.

SEC Filings

10-K
ENTERPRISE PRODUCTS PARTNERS L P filed this Form 10-K on 02/28/2018
Entire Document
 


The results of operations from our propylene fractionation units are generally dependent upon toll processing arrangements with customers. The results of operations from our petrochemical pipelines are primarily dependent upon the volume of products transported and the level of fees charged to shippers.

We purchase RGP on the open market for fractionation at our facilities and sell the resulting PGP at market-based prices. The results of operations from these petrochemical marketing activities are primarily dependent upon the difference, or spread, between the sales prices of the products and associated purchase and other costs, including those costs attributable to the use of our assets. To limit the exposure of these marketing activities to price risk, we attempt to match the timing and price of our feedstock purchases with those of the sales of end products.

Our petrochemical marketing activities also include the results of operations of our PDH facility. We purchase propane for our PDH facility to process into PGP, which is then sold to customers under long-term sales contracts (take-or-pay arrangements) that feature minimum volume commitments and contractual pricing that minimizes our commodity price risk.

In order to meet the demand of international customers, this business also includes export assets located at our EHT complex that are capable of loading up to 5,000 metric tons per day of refrigerated PGP. 
 
The following table presents selected information regarding our propylene fractionation units at February 1, 2018:

   
Our
Net Plant
Total Plant
   
Ownership
Capacity
Capacity
Description of Asset
Location(s)
Interest
(MBPD)
(MBPD)
Propylene fractionation facilities:
       
Mont Belvieu (six units)
Texas
 Various   (1)
81
95
BRPC (one unit)
Louisiana
    30.0%  (2)
7
23
   Total
   
88
118
         
(1)   We proportionately consolidate a 66.7% undivided interest in three of the propylene fractionation units, which have an aggregate 41 MBPD of total plant capacity.  The remaining three propylene fractionation units are wholly owned.
(2)   Our ownership interest in the BRPC facility is held indirectly through our equity method investment in Baton Rouge Propylene Concentrator LLC (“BRPC”).

We produce PGP at our Mont Belvieu, Texas propylene fractionation units and CGP at our BRPC facility located in Baton Rouge, Louisiana.  On a weighted-average basis, the overall utilization rate of our propylene fractionation facilities was approximately 89.9%, 81.9% and 80.5% during the years ended December 31, 2017, 2016 and 2015, respectively.

The following table presents selected information regarding our propylene pipelines at February 1, 2018:

   
Ownership
Length
Description of Asset
Location(s)
Interest
(Miles)
Petrochemical pipelines:
     
Lou-Tex Propylene Pipeline
Texas, Louisiana
  100.0%
263
Texas City RGP Gathering System
Texas
  100.0%
168
North Dean Pipeline System
Texas
  100.0%
157
Propylene Splitter PGP Distribution System
Texas
  100.0%
82
Sorrento-to-Breaux Bridge RGP Pipeline
Louisiana
  100.0%
63
Lake Charles PGP Pipeline
Texas, Louisiana
    50.0%  (1)
27
La Porte PGP Pipeline
Texas
    80.0%  (2)
20
Sabine Pipeline
Texas, Louisiana
  100.0%
15
Total
   
795
       
(1)   We proportionately consolidate our undivided interest in the Lake Charles PGP Pipeline.
(2)   We own an 80% consolidated interest in the La Porte PGP Pipeline through our majority owned subsidiaries, La Porte Pipeline Company, L.P. and La Porte Pipeline GP, L.L.C.
22