Enterprise to commence new pipeline project in Texas

Tuesday, 25 May 2010 13:58:04 (GMT+2)

Houston, US-based leading energy company Enterprise Products Partners LP ( Enterprise) announced on May 24 an expansion of its network of crude oil and natural gas assets in South Texas as part of a letter of intent (LOI) signed with a major Eagle Ford Shale producer.

According to the LOI, Enterprise would construct a 224 km crude oil pipeline originating in Karnes County, Texas and connecting to the partnership's existing crude oil system in Austin County, Texas supported by a long-term transportation agreement. Enterprise is in discussions with a number of other producers to provide crude oil transportation services through additional connections to the pipeline.

When completed, Enterprise's crude oil pipeline system will provide access to the refining markets in the Houston area, as well as the major storage hub in Cushing, Oklahoma through the Enterprise-operated Seaway pipeline.

The capacity of the new crude oil pipeline will be sized to serve multiple producers as output in the Eagle Ford Shale region continues to increase. In addition to the pipeline infrastructure, the partnership is also constructing central delivery points in three locations along the new pipeline to receive crude oil from gathering lines and trucks. This crude oil pipeline expansion project is expected to be completed in the fourth quarter of 2011.

The LOI also contains a natural gas component, which includes a seven-year natural gas transportation and processing agreement.

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