Enterprise Products Partners on Thursday closed on a $38.5 million deal to buy out of bankruptcy Bigler LPs Houston Ship Channel facility that produces high-purity isobutylene and provides terminal services for refined products and petrochemicals.
On Friday, Enterprise stated the facility can produce more than 300 million pounds of HPIB annually, a substantial portion of which is under contract. The chemical is used in lubricant base stocks and additives, tires and other petroleum-based products.
In the business model that we use, were always looking for additional opportunities to enter into additional firm contracts for the remainder of that capacity as well, Enterprise spokesman Rick Rainey told Lube Report. And then with the opportunities for expansion, and integration into our existing network, that does create some attractive opportunities.
Part of a 250-acre complex, the facility features four pressurized spheres for the storage of HPIB and butanes. In addition, more than 450,000 barrels of storage capacity is available for refined products, and is accessible by barge. The plant has multiple truck and rail racks for product movements, along with rail car storage for up to 105 rail cars. The facility is near Enterprises liquids pipelines that transport natural gas liquids and refined products.
This acquisition complements our existing natural gas liquids, petrochemical services and refined products businesses and is a natural extension of our nearby Mont Belvieu operations, which will provide the raw materials for the plant, said Michael Creel, president and CEO of Enterprise, headquartered in Houston. The integration of this facility will extend our value chain in the butane/isobutylene market and broaden the products and services offered by our petrochemical services business.
Enterprises petrochemical and refined products services business segment includes propylene fractionation plants, butane isomerization facilities, an octane enhancement facility, refined products pipelines and marine transportation and other services.
According to court records, Houston-based Bigler LP and its land, petrochemical, plant services and terminals affiliates filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court for the Southern District of Texas in November 2009. Bigler Specialty Oils and Bigler Chemicals were not part of the bankruptcy filing.
According to its web site, Bigler LP built its HPIB plant in coordination with BASF, starting up the facility in March 2009. At the time, the start-up represented completion of the first phase of a planned $1.2 billion investment in its site in Pasadena, Texas.