The new capacity will be the first clean products caverns in Enterprise Mont Belvieu storage system. Also, this will be the first underground products caverns for Enterprise, which owns other aboveground products tanks at other
locations. These are not new caverns, but existing NGL storage capacity that is converted to store refined clean products.
Industry sources said that the total 4 million bbl capacity will be spilt evenly between gasoline and distillates. Enterprise did not specify any designated volume for each product in new converted tanks.
The cavern conversion plans were first made public in March during an analyst conference call.
Enterprise has a crude, NGL and refined products marketing group that trades around its storage assets or also known as system trading. The company is not involved in directional or speculative trading, and does not take market
positions. The role of the marketing group is to steer business towards the company’s assets. The company hired a few products traders earlier this year.
Enterprise has a total capacity of 190 million bbl for NGL, refined products and crude oil storage.