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Enterprise Products is making headway with construction of the Neches River Ethane Export Terminal in Orange County — the project, an estimated $878 million investment, will create 29 permanent jobs and a projected economic impact of $680 million over 20 years.

“We’re certainly excited Enterprise is here doing it,” said Orange County Judge John Gothia. “It’s a huge project and will be great to have in our county. For us, the tax base and job creation are the two things we look at for the biggest impact.”

Project Details

The Neches River Terminal is located on South Mansfield Ferry Road in Orange County within Orangefield ISD. It sits adjacent to the company’s existing Beaumont East refined products terminal on the Neches River.

Officials at the Orange County Economic Development Corporation said construction began last year. Enterprise projections from August 2022 estimated the creation of 2,790 direct construction jobs at the project’s peak, per the EDC.

The EDC also said Enterprise estimated an overall impact of $680 million to the Orange County economy over the next 20 years. This includes direct impacts of the project itself such as taxes and job growth, as well as indirect effects for other local businesses.

The Neches River Terminal will receive product from other Enterprise facilities and process it for shipping. Once processed, refrigerated ethane and propane will be loaded onto ships for export.

The near billion-dollar development consists of two refrigeration trains, a large refrigeration tank and a dock on the Neches River. This development is broken down into two phases which are expected to be completed over the next two years.

Phase one of the buildout includes a new loading dock; an ethane refrigeration train with a 120,000-barrel per day capacity; and a 900,000-barrel refrigerated tank which accommodates up to 45,000 barrels per hour for loading. It is expected to begin operation in the second half of 2025.

Phase two consists of a second refrigeration train which will allow loading of up to 180,000 BPD of ethane, 360,000 BPD of propane, or a combination of the two. Phase two of the project is anticipated to begin service in the first half of 2026.

Tax Details

There are five taxing entities involved with the project, three of which provided a tax abatement or limitation. Documents from 2022 outline tax information, however, some monetary estimations are subject to change due to updated property appraisals and tax rates each year.

Orange County

May 24, 2022, the Orange County Commissioner’s Court held a hearing to discuss the project and signed an order creating Reinvestment Zone No. 3, which spans 1769.99 acres. The Enterprise project falls within this boundary.

According to the Orange County EDC, Enterprise received a 10-year, 100% property tax abatement which takes effect in 2025. An estimated $29 million is expected to be abated between 2025-2035. However, county property taxes owed by Enterprise are projected to be $56 million over the first 20 years of the terminal’s operation.

The Orange County Commissioner’s Court approved the tax abatements October 25, 2022, at a special session.

The county should also see payments in lieu of taxation (PILOT payments) of $425,000 annually through the abatement’s term. These begin in 2025 when the abatement takes effect.

Orangefield ISD

December 12, 2022, the Orangefield ISD Board of Trustees approved an agreement for limitation on appraised value with Enterprise. The limitation agreement begins in 2025 and caps the project’s taxable value at $25 million for 10 years. 

As such, Enterprise will pay around $250,000 in yearly ISD maintenance & operations taxes through the limitation period depending on the district tax rate. District interest & sinking taxes will be paid at their full value.

Orangefield ISD Superintendent Shaun McAlpin said the limitation helps protect the district because when local revenues increase, state funding often decreases — a massive jump in local revenue without the limitation in place could have left the district with significant cuts to state funding.

For now, PILOT payments are the main benefit Orangefield ISD should see. These payments begin in 2025 and are expected to pay out annually over a 15-year period. The amount is calculated by multiplying the district’s 2020-2021 average daily attendance by $100. Documented findings on the district website say the total amount will be at least $2.569 million.

The district may also receive revenue protection payments, though the status and amount remain in flux. If the district is eligible to receive these payments, they will be calculated based on the 2025 tax rate.

“We’re excited to have Enterprise in the community,” Orangefield Superintendent Shaun McAlpin said. “They were great to work with during the whole development. We’re looking forward to working with them, and how it’ll help our district continue doing great things for our students and our staff.”

Navigation and Ports District

Enterprise obtained a tax abatement from the Navigation and Ports District. This 10-year, 100% abatement is identical to the one provided by Orange County.

The Navigation & Ports District should also receive annual PILOT payments of $7,000 through the 10-year abatement period beginning in 2025.

Non-abated Entities

The Drainage District and Emergency Services District 1 did not grant tax abatements to Enterprise. As such, they will bring in tax revenues depending on yearly tax rates and appraised property value of the Enterprise project.