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Enterprise and Exxon Chemical Announce Propylene Concentration Unit
HOUSTON--(BUSINESS WIRE)--Aug. 19, 1999--Enterprise Products Partners L.P. (NYSE:EPD) and Exxon Chemical Company today announced that they have reached agreement in principle to form a joint venture that will own and operate a new proplyene concentration unit currently under construction. The unit, located in Port Allen, La., across the Mississippi River from Exxon's refinery and chemical plant, will be owned and operated by Baton Rouge Propylene Concentrator LLC, a joint venture between affiliates Exxon Chemical and Enterprise.

The unit will upgrade refinery-grade propylene produced by Exxon and others into chemical grade propylene, a basic building block petrochemical used in plastics, synthetic fibers, and foams.

Upon completion of the project, expected in mid-2000, the facility will have the capacity to produce 1.5 billion pounds (680,000 metric tons) per year of chemical grade propylene. Construction began in March 1999 with an average construction workforce of 150 people. Approximately fifteen permanent jobs will be created by the project.

Under the agreement in principle, an Exxon Chemical affiliate and Enterprise would own a 70 percent and 30 percent interest, respectively, in the production capacity of the unit. Enterprise will manage design and construction of the facility and will also serve as the operator of the facility. Enterprise, an experienced facility builder and operator, is the majority owner and operator of two propylene concentration facilities at their Mont Belvieu, Texas, complex with a total capacity of 2.1 billion pounds per year of polymer grade propylene.

"We look forward to partnering with an industry leader such as Exxon Chemical on this project. Enterprise brings value to this project through our experience as an efficient, service oriented builder and operator of natural gas liquid and propylene processing facilities," said O.S. "Dub" Andras, president and chief executive officer of Enterprise. "This project should be accretive for our unitholders and will increase the scope of our operations in the Mississippi River refinery and petrochemical corridor."

Enterprise Products Partners L.P. is one of the leading midstream energy service companies in North America providing processing, transportation and storage services to producers of natural gas liquids and consumers of natural gas liquid products. Enterprise is an owner of and operates some of the largest natural gas liquids fractionation facilities in the United States, the largest isobutane complex in the United States, two propylene fractionation facilities, an MTBE production facility, an import/export terminal, approximately 35 million barrels of storage capacity and a 750-mile network of pipelines all located along the Gulf Coast.

This press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 based on the beliefs of the company, as well as, assumptions made by, and information currently available to, management. Although Enterprise believes that the expectations reflected in such forward-looking statements are reasonable; it can give no assurance that such expectations will prove to be correct.

     
     CONTACT: Enterprise Products Partners L.P., Houston
              Randy Fowler, 713/880-6694
              http//www.epplp.com

     

K-1 Tax Information

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