Energy Transfer Partners and Satellite Petrochemical USA have formed a JV to build a new export terminal on the US Gulf Coast.
The new facility will provide ethane to Satellite for consumption at their ethane cracking facilities in China.
The JV, Orbit Gulf Coast NGL Exports, will also construct a 20-inch ethane pipeline originating at ETP’s Mont Belvieu Fractionators that will make delivers to Orbit’s ethane export terminal on the US Gulf Coast as well as domestic markets in the region.
At the terminal, Orbit will build 800,000 barrel refrigerated ethane storage tank and a 175,000 barrel per day ethane refrigeration facility. Energy Transfer will be the operator of the Orbit assets.
Additionally, Energy Transfer will construct and wholly own the infrastructure that is required to both supply ethane to the pipeline and load the ethane on to the VLECs destined for the ethane crackers in China’s Jiangsu province.
It is anticipated that the Orbit export terminal will be put in service by the fourth quarter of 2020.
As part of these agreements, Energy Transfer and Satellite also executed agreements for the sale of ethane at the terminal. Energy Transfer will provide Satellite with 150,000 barrels per day of ethane under a long-term, demand-based agreement. Energy Transfer will also provide storage and marketing services for Satellite.