Maximizing Profit Potential: Aggreko Helps Houston Propane Facility Seize Market Opportunity
Client: Leading Propane Export Facility
Location: Houston, Ship Channel
Sectors: PCR
The Challenge
Seize a unique seasonal market opportunity amidst ongoing expansion delays
A leading propane export facility along the Houston Ship Channel announced plans for three major expansion projects to meet the rising global demand for liquefied petroleum gas (LPG), polymer-grade propylene (PGP), and crude oil. The planned expansions aim to enhance the facility’s operational flexibility by enabling fully refrigerated PGP and LPG co-loading onto the same vessel, thereby optimizing their clients’ supply chain efficiency.
However, in 2023/2024, market economics presented a unique seasonal opportunity to capitalize on increased propane refrigeration. Unfortunately, completing the capital expansion projects was still some time away, creating a gap between the facility’s current capabilities and the optimal profit window. To bridge this gap and seize the market opportunity, the company turned to Aggreko for a timely and effective solution.
Key Facts
The Solution
An engineered cooling and electrical distribution solution for overcoming expansion challenges and boosting propane export capacity
Understanding the urgency and complexity of the situation, Aggreko collaborated closely with the export facility to design and implement a tailored, multi-year debottlenecking application for their propane export system. The ambitious goal was to boost the facility's export capacity before the capital project's completion.
Aggreko Process Services engineered a comprehensive temperature control system to cool 288,000 barrels per day (BPD) of propane (98% LV C3, 2% C2) from 95°F to 65°F upstream of the refrigeration compressor at a pressure of 400 psig.
Aggreko delivered, installed, and commissioned a comprehensive temperature control system to achieve this target. This solution incorporated a range of advanced temperature control equipment, including mobile cooling towers, water-cooled chillers, heat exchangers, pumps, and expansion vessels.
In addition to the temperature control system, Aggreko delivered a fully engineered electrical solution. This included transformers, stand-alone breakers, complex distribution panels, and extensive cabling seamlessly integrated with the facility's existing energy infrastructure. The system was meticulously designed to operate within a compact footprint, minimize pressure drops, and adhere to the stringent safety requirements of an electrically classified area.
The Impact
Captured a critical market opportunity, increasing overall system value by an estimated 10-11%
Aggreko's solution enabled the facility to swiftly capture a critical market opportunity, delivering an estimated 10-11% increase in overall system value. The carefully engineered approach effectively mitigated pressure drops, optimized the system's footprint for space constraints, and ensured compliance with safety standards. Aggreko was able to provide a solution that was both innovative, reliable, and cost effective.
The temporary system will remain operational for approximately two years, bridging the gap until the facility's permanent expansion project comes online. Throughout this period, Aggreko's Process Services (APS) project management team and technicians will continue to provide ongoing maintenance and support to the system, ensuring its optimal performance and reliability.
Additionally, the facility benefits from Aggreko Remote Monitoring (ARM)—a proactive digital program that continuously monitors equipment performance, prevents potential failures, and maintains direct communication with local operations teams to address any unexpected issues.
Aggreko's solution allowed the facility to capitalize on a critical profit window and set the stage for continued operational excellence as it transitioned to expanded capabilities.