Enterprise Products Partners L.P. (EPD), Enbridge Energy Partners L.P. (EEP) and Anadarko Petroleum Corporation (APC) have agreed to jointly create a 580-mile natural-gas-liquids pipeline.
The three companies will create the pipeline to link producing basins in Skellytown, TX to fraction and storage facilities in Mont Belvieu, TX.
The pipeline will be named the Texas Express Pipeline and its initial capacity will be 280,000 barrels a day, eventually expanding to about 400,000 barrels a day.
The joint development will also create two new natural-gas-liquids gathering systems. One will connect the new pipeline to natural gas processing plants in Anadarko’s Granite Wash production area in the Texas Panhandle and Western Oklahoma, while the second will connect the new pipeline to Barnett Shale processing plants in Central Texas.
Enterprise is going to construct and operate the pipeline, and Enbridge will construct and operate the two gathering systems.
“We are very pleased to partner with Enbridge and Anadarko on this project, which offers a comprehensive industry solution for addressing NGL transportation constraints that are currently limiting access to the largest domestic NGL market located along the Gulf Coast,” said Michael A. Creel, Enterprise president and CEO.
“Enbridge is also very pleased to be working with Enterprise and Anadarko on this critical NGL pipeline,” said Mark Maki, president of Enbridge Energy Partners, L.P.
The pipeline will open up new markets for all three companies involved. The Texas Express Pipeline and gathering systems are expected to start service in the second quarter of 2013.
Until next time,
Cori
