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Enterprise to Begin Phase 2 Expansion of its Natural Gas Liquid Import and Export Terminals and Supporting Facilities at Mont Belvieu

HOUSTON--(BUSINESS WIRE)--May 2, 2006--Enterprise Products Partners L.P. (NYSE:EPD) today announced plans to begin the Phase 2 expansion of its world class natural gas liquid ("NGL" or "LPG") import terminal from a maximum peak operating rate of 240 thousand barrels per day ("MBPD") to 480 MBPD and its export terminal from a maximum rate of 140 MBPD to 160 MBPD. The import/export terminal, which is located on the Houston Ship Channel at Oiltanking Houston L.P., will have the capability to simultaneously unload two VLGC ships which typically carry up to 550,000 barrels of LPG.

Pipeline capacity from Enterprise's import terminal to its large fractionation and storage complex in Mont Belvieu will be expanded to accommodate the increased capacity of the terminal. In addition, Enterprise will increase its capacity to fractionate, or separate, mixed butanes by approximately 20 MBPD, giving the partnership the capability to fractionate up to 300 MBPD of imported mixed butanes, domestic butanes and butanes sourced from the partnership's isomerization facilities at its Mont Belvieu facility.

Enterprise designed and constructed its import/export terminal and supporting infrastructure in the mid-1990s with the potential for significant capacity expansions requiring only nominal amounts of additional capital investment. The Phase 2 expansion will take the import terminal up to its maximum designed nominal capacity of 400 MBPD and the export terminal up to approximately 40% of its designed maximum capacity. Construction will begin immediately with completion expected in the second quarter of 2007. The incremental cost of the Phase 2 expansion, including related facilities, is approximately $40 million. Based on utilization rates of 25% of the incremental capacity the project is expected to generate a 15% return on investment.

Waterborne NGL import volumes to the U.S. have set three consecutive annual records, with 2005 imports totaling approximately 61.4 million barrels. According to energy consultants Purvin & Gertz, Inc., at their recent international seminar, world-wide LPG supplies are expected to grow significantly. Through 2010, they project that international supplies of LPGs, principally from the Middle East and the Atlantic Basin, will increase by over 65 million barrels per year with surplus supplies most likely delivered to the U.S.

Currently, Enterprise's existing import capacity is substantially subscribed under term contracts. The expansion of Enterprise's import facility and supporting assets at Mont Belvieu would facilitate the importation of increased supply of LPGs to the United States.

"This project builds on Enterprise's leading market share of LPG import and export terminaling services," said Robert G. Phillips, Enterprise's President and Chief Executive Officer. "In 2005, Enterprise handled approximately 54% of total waterborne LPG imports into the United States. By expanding our capabilities, we will be able to handle increased imports at rates that are twice our current capacity and provide supporting services through our integrated fractionation, pipeline and storage value chain."

Enterprise Products Partners L.P. is one of the largest publicly traded energy partnerships with an enterprise value of approximately $15 billion, and is a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs and crude oil. Enterprise transports natural gas, NGLs and crude oil through 32,776 miles of onshore and offshore pipelines and is an industry leader in the development of midstream infrastructure in the Deepwater Trend of the Gulf of Mexico. Services include natural gas transportation, gathering, processing and storage; NGL fractionation (or separation), transportation, storage, and import and export terminaling; crude oil transportation and offshore production platform services. For more information, visit Enterprise on the web at Enterprise Products Partners L.P. is managed by its general partner, Enterprise Products GP LLC, which is wholly owned by Enterprise GP Holdings L.P. (NYSE:EPE). For more information on Enterprise GP Holdings L.P., visit its website at

This press release contains various forward-looking statements and information that are based on Enterprise's beliefs and those of its general partner, as well as assumptions made by and information currently available to Enterprise. When used in this press release, words such as "anticipate," "project," "expect," "plan," "goal," "forecast," "intend," "could," "believe," "may," and similar expressions and statements regarding the plans and objectives of Enterprise for future operations, are intended to identify forward-looking statements. Although Enterprise and its general partner believe that such expectations reflected in such forward-looking statements are reasonable, neither Enterprise nor its general partner can give assurances that such expectations will prove to be correct. Such statements are subject to a variety of risks, uncertainties and assumptions. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, Enterprise's actual results may vary materially from those Enterprise anticipated, estimated, projected or expected. Among the key risk factors that may have a direct bearing on Enterprise's results of operations and financial condition are:

    --  fluctuations in oil, natural gas and NGL prices and production
        due to weather and other natural and economic forces;

    --  a reduction in demand for its products by the petrochemical,
        refining or heating industries;

    --  the effects of its debt level on its future financial and
        operating flexibility;

    --  a decline in the volumes of NGLs delivered by its facilities;

    --  the failure of its credit risk management efforts to
        adequately protect it against customer non-payment;

    --  terrorist attacks aimed at its facilities; and

    --  the failure to successfully integrate its operations with
        assets or companies, if any, that it may acquire in the

Enterprise has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

    CONTACT: Enterprise Products Partners L.P., Houston
             Randy Burkhalter, Investor Relations, 713-880-6812

    SOURCE: Enterprise Products Partners L.P.

K-1 Tax Information

The Enterprise Products Partners L.P. (EPD) 2018 tax packages are currently available online. The mailing of the tax packages will be completed by February 28, 2019.

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