TEXAS EASTERN TO BEGIN MTBE SHIPMENTS

Texas Eastern Products Pipeline Co. (Teppco) plans to start U.S. storage and pipeline shipments of methyl tertiary butyl ether within 30 days. And within 90 days, the company plans to have completed system modifications to allow pipeline movements of MTBE from the Gulf Coast to the Upper Midwest. That will make it the first U.S. pipeline to continuously move and store significant volumes of the gasoline octane booster. Teppco's MTBE shipments ultimately will be destined for use in gasoline

May 20, 1991

2 min read

Texas Eastern Products Pipeline Co. (Teppco) plans to start U.S. storage and pipeline shipments of methyl tertiary butyl ether within 30 days.

And within 90 days, the company plans to have completed system modifications to allow pipeline movements of MTBE from the Gulf Coast to the Upper Midwest. That will make it the first U.S. pipeline to continuously move and store significant volumes of the gasoline octane booster.

Teppco's MTBE shipments ultimately will be destined for use in gasoline for the Chicago, Cleveland, and Detroit markets.

WHAT'S PLANNED

Teppco at first will transport 40,000-50,000 bbl/ month, with the volume increasing steadily during 1991.

By the mid-1990s, MTBE transportation could grow to 8-10% of Teppco's gasoline products stream, said Teppco Pres. Michael D. Burke.

The company will replace fluorinated elastomer sealing materials on pipelines, pumps, tanks, and valves with teflon elastomers. MTBE causes fluorinated elastomers to swell and soften, Teppco pointed out.

Until system components can be refitted, Teppco plans to purge its system with gasoline immediately after MTBE shipments.

Minimizing exposure time helps to improve seal resistance.

By mid-June, Teppco will have converted 100,000 barrels of storage capacity at its Beaumont, Tex., marine and pipeline terminals to handle MTBE.

And by the end of 1991, those units will be able to store as much as 800,000 bbl of the product.

Later conversions could increase total storage capacity to 1.5 million bbl. Teppco's pipeline system also will be tied into MTBE storage and production sites on the Gulf Coast.

Teppco's plans include increased transportation of isobutane, an MTBE feedstock.

THE MARKET

Burke cited forecasts of a shortfall in U.S. MTBE supply in the early to mid-1990s as refiners step up production of reformulated gasolines to comply with Clean Air Act amendments.

Logistics will play a key role in MTBE use by refineries, particularly during 199295 when supply will be tightest, Burke said.

Teppco also cited industry projections that in less than 2 years about one third of U.S. gasoline will have to be converted to oxygenated fuels during the 4 winter months.

MTBE is the first major new product introduced for mass transportation by the products pipeline industry since unleaded gasoline in the mid-1970s, Teppco pointed out.

"The impact of MTBE on the industry could be several times the impact of the introduction of unleaded gasoline," said David Langley, Teppco vice-president.