Enterprise Products (EPD) has started service at the Neches River Terminal near Beaumont, TX. The asset brings a new dimension of flexibility to NGL markets, a quality East Daley Analytics expects will be increasingly prized as companies contend with overcapacity.
Enterprise commissioned the Neches River dock and a 120 Mb/d ethane refrigeration train in mid-July, the company confirmed in its 2Q25 earnings. The first LPG carrier anchored at the dock on July 23, according to ship-tracking firm Vortexa.
The terminal is being developed in two stages. Phase 1 brings 120 Mb/d of dedicated ethane export capacity online, while Phase 2 will add up to 180 Mb/d of flexible capacity that can swing between ethane and LPG service, depending on market dynamics. In total, Neches River could support up to 300 Mb/d of ethane or 360 Mb/d of LPG exports, expanding EPD’s total ethane-capable export footprint on the Gulf Coast to 540 Mb/d when combined with the Morgan’s Point terminal.
What sets Neches River apart is its feedstock flexibility. The dock can source ethane volumes from both the ATEX and AEGIS pipelines, giving EPD the ability to pull supply from the Northeast or from production hubs across the rest of the country. This dual connectivity creates optionality in ethane flow patterns and introduces a new lever for managing regional supply imbalances. Aside from Energy Transfer’s (ET) Marcus Hook terminal, East Daley Analytics’ NGL Hub Model indicates this is the first meaningful path for incremental Northeast ethane to reach global markets since ATEX was completed.
East Daley’s ATEX forecast highlights that current throughput is well below the pipeline’s ~190 Mb/d nameplate capacity, with significant slack persisting across the forecast horizon. Meanwhile, our data shows the Northeast continues to reject large volumes of ethane into the gas stream due to limited local demand and export bottlenecks.
With Neches River online, we expect recovered ethane in the Northeast to rise over time. Producers with the most exposure include EQT, Antero Resources (AR), Coterra Energy (CTRA) and Expand Energy (EXE) — all of which operate on G&P systems showing high ethane yields and access to ATEX interconnects, according to counterparty data in Energy Data Studio.
The buildout also introduces a new layer of volatility for Gulf Coast petrochemical buyers. If EPD prioritizes barrels off AEGIS, local ethane supply will tighten, potentially lifting ethane prices at Mont Belvieu. The result is a commercial tug-of-war between Northeast producers pushing volumes down ATEX and Gulf Coast consumers seeking price stability. For EPD, the flexibility is a commercial advantage. For the broader market, it’s a new variable that could drive wider regional basis spreads and reward infrastructure with feedstock optionality.
EPD’s Neches River dock underscores a growing theme in East Daley’s NGL outlook: infrastructure flexibility matters more than headline capacity. In a world where geopolitics and trade policy are reshaping traditional flows, optionality is becoming the most valuable commodity of all. – Julian Renton Tickers: AR, CTRA, EPD, EQ, ET, EXE.
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