The new propane dehydrogenation (PDH)
project from Enterprise Products is facing further delays and is now expected to be completed in the first quarter of 2017.
Enterprise disclosed the news in its annual 10-K filing with US regulators, which became available this week.
Commercial operations at the new plant in Mont Belvieu, Texas, are slated to begin during the second quarter, the Houston-based partnership said.
Enterprise previously expected the 1.65 billion lb/yr PDH unit to come online by the end of 2016. The delay comes as weaker commodity prices place downward pressure on prices for polymer-grade propylene (PGP), thereby narrowing margins.
Enterprise's unit will consume about 35,000 bpd of propane, according to the company.
Delays to Enterprise's
project follow Williams' recent announcement that it will postpone work on its proposed PDH unit in Alberta, Canada, pending the completion of its merger with Energy Transfer.