Enterprise to Increase Propylene Fractionation Capacity at Mont Belvieu

Enterprise Products Partners L.P. (NYSE:EPD) today announced plans to expand its polymer grade propylene (PGP) fractionation facility at the partnership’s Mont Belvieu, Texas complex, which will add approximately 7,500 barrels per day (BPD), or 500 million pounds per year, of incremental PGP production. The expansion is expected to be in service in the first quarter of 2013. When completed, the expansion would increase Enterprise’s net capacity to produce PGP at its Mont Belvieu facility by more than 10 percent from 73,000 BPD (approximately 4.9 billion pounds per year) to roughly 80,500 BPD (approximately 5.4 billion pounds per year).

To produce PGP, which is approximately 99.5 percent pure propylene, Enterprise fractionates refinery grade propylene (RGP), which is approximately 60 percent to 65 percent propylene, with the remainder being propane and butane. PGP is used in the production of plastic consumer products, coatings, pharmaceuticals, detergents and solvents. Since 2000, demand for PGP has increased by 20 percent; however, the supply of PGP produced as a co-product from the cracking of crude oil derivatives in the production of ethylene has declined approximately 40 percent. This decline is attributable to ethylene producers using more NGLs, such as ethane and propane, as feedstocks instead of more costly crude oil derivatives.

"The shift to NGL feedstocks by the ethylene industry, which is driven by the disparity between natural gas and crude oil prices, has led to a significant reduction in co-production of propylene at North American petrochemical facilities,” said A.J. "Jim” Teague, executive vice president and chief operating officer of Enterprise’s general partner. "This is placing a premium on fractionation services like those Enterprise provides at its Mont Belvieu complex. Planning for future growth, we oversized portions of the last propylene fractionator we built in 2007, which results in lower capital costs associated with this current expansion.”

Refining economics that have led to increased availability of RGP on the market are also helping to drive the expansion project. The partnership has secured a portion of the feedstock required to supply the new fractionator and continues to work with various refiners. Additionally, the partnership has been in discussions with a number of petrochemical companies to acquire the incremental PGP production associated with the expansion.

Enterprise has an extensive integrated propylene infrastructure system that complements the expansion project. With an RGP pipeline gathering system that connects to 13 refineries, as well as marine, rail and truck transportation capabilities at the Mont Belvieu complex, Enterprise can receive supplies from 57 facilities across North America and continues to look for other reliable sources of RGP. On the delivery side, Enterprise connects to 15 consumers of PGP propylene with two other connections under construction and scheduled for completion in 2011. The partnership also has the only operating PGP export terminal in the U.S., located in Seabrook, Texas. This facility enables Enterprise to provide PGP to growing international markets.

Enterprise Products Partners L.P. is the largest publicly traded partnership and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. EPD’s assets include approximately: 50,200 miles of onshore and offshore pipelines; 192 million barrels of storage capacity for NGLs, refined products and crude oil; and 27 billion cubic feet of natural gas storage capacity. Services include: natural gas transportation, gathering, processing and storage; NGL fractionation, transportation, storage, and import and export terminaling; crude oil and refined products storage, transportation and terminaling; offshore production platform; petrochemical transportation and storage; and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems and in the Gulf of Mexico.

This press release includes "forward-looking statements” as defined by the Securities and Exchange Commission. All statements, other than statements of historical fact, included herein that address activities, events, developments or transactions that EPD expects, believes or anticipates will or may occur in the future, including anticipated benefits and other aspects of such activities, events, developments or transactions, are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including required approvals by regulatory agencies, the possibility that the anticipated benefits from such activities, events, developments or transactions cannot be fully realized, the possibility that costs or difficulties related thereto will be greater than expected, the impact of competition and other risk factors included in the reports filed with the Securities and Exchange Commission by EPD. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. Except as required by law, EPD does not intend to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.