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Enterprise's (EPD) New Ethylene Storage Tank Comes Online

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Enterprise Products Partners L.P. (EPD - Free Report) recently announced the commencement of service of an ethylene storage tank at a terminal, located in Morgan’s Point, TX.

The new refrigerated ethylene storage tank has a capacity of 30,000 tons. The ethylene export terminal is a joint venture between a subsidiary of Enterprise Products and a unit of U.K.-based Navigator Holdings Ltd. (NVGS - Free Report) .

Notably, an ethylene gas carrier named Navigator Atlas was the first vessel to use the new ethylene storage tank’s service when it was loaded. The new tank is expected to reduce time for loading and increase efficiency. It is supplied by an ethylene storage cavern of 600 million pound. The partnership has the potential of boosting storage capacity through expanding the underground caverns.

Furthermore, it will likely help the terminal to reach export capacity target of 1 million tons per annum. The Morgan’s Point ethylene export unit receives supply from the U.S. Gulf Coast through the partnership’s vast midstream infrastructure. It will likely witness strong demand for Navigator's specialized vessels’ fleet that loads ethylene. The partnership shipped the first cargo of ethylene from its Morgan’s Point marine terminal at the start of this year.

Enterprise Products has an extensive network of pipeline that spreads across nearly 50,000 miles. The pipelines carry natural gas, natural gas liquids, crude oil, and refined products as well as petrochemicals. Most importantly, the partnership’s midstream properties are linked to all prospective U.S. shale plays that are rich in natural gas and oil. This extensive network of pipelines provides it with stable fee-based revenues.

Price Performance

The stock has risen 9.8% in the past six months compared with 1.5% increase of the industry it belongs to.

Zacks Rank & Key Picks

The partnership has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space include Covanta Holding Corporation and Ring Energy, Inc. (REI - Free Report) , each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Covanta Holding’s bottom line for 2021 is expected to rise 91.1% year over year.

Ring Energy’s sales for 2021 are expected to rise 2.5% year over year.

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Enterprise Products Partners L.P. (EPD) - free report >>

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