Enterprise to Build Shin Oak NGL Pipeline from Permian Basin to Mont Belvieu, Texas
April 10 2017 - 8:30AM
Business Wire
Enterprise Products Partners L.P. (NYSE:EPD) today announced the
construction of a new 571-mile pipeline to transport growing
volumes of natural gas liquids (“NGL”) from the Permian Basin to
Enterprise’s NGL fractionation and storage complex in Mont Belvieu,
Texas. The Shin Oak NGL pipeline will originate at Enterprise’s
Hobbs NGL fractionation and storage facility in Gaines County,
Texas. The 24-inch diameter pipeline will have an initial design
capacity of 250,000 barrels per day (“BPD”), expandable to 600,000
BPD. This project is supported by long-term customer commitments
and is expected to be in service in the second quarter of 2019.
In addition to mixed NGL supplies aggregated at the Hobbs
facility, the Shin Oak pipeline will provide takeaway capacity for
mixed NGLs extracted at natural gas processing plants in the
Permian region, including two Enterprise facilities that began
service in 2016 and the Orla I plant that is scheduled to begin
operations in the second quarter of 2018. In tandem with
Enterprise’s existing NGL pipelines, this new pipeline will also
increase the company’s capacity to transport purity NGL products
from Hobbs to Mont Belvieu.
Enterprise’s Mont Belvieu NGL complex is the largest of its kind
in the world, offering customers access to approximately 130
million barrels of underground storage capacity, and 670,000 BPD of
NGL fractionation capability. Enterprise is building a ninth
fractionator at Mont Belvieu that will increase NGL fractionation
capacity by 85,000 BPD following its expected completion in the
second quarter of 2018. Mont Belvieu is pipeline-connected to the
expanding U.S. petrochemical industry on the Gulf Coast, as well as
Enterprise’s industry-leading LPG and ethane deepwater marine
export terminals on the Houston Ship Channel.
“The Permian Basin is currently the hottest play in North
America and is expected to continue its strong growth for years to
come,” said A.J. “Jim” Teague, chief executive officer of
Enterprise’s general partner. “The Shin Oak pipeline project is
part of Enterprise’s larger plans in the Permian to leverage our
integrated midstream assets to link supplies of cost-advantaged
U.S. hydrocarbons to the largest domestic and global NGL markets.
This additional pipeline takeaway capacity to Mont Belvieu will
provide Permian producers the flow assurance they need to continue
the unfettered development of their reserves with confidence.”
Enterprise Products Partners L.P. is one of the largest publicly
traded partnerships and a leading North American provider of
midstream energy services to producers and consumers of natural
gas, NGLs, crude oil, refined products and petrochemicals. Our
services include: natural gas gathering, treating, processing,
transportation and storage; NGL transportation, fractionation,
storage, and export and import terminals; crude oil gathering,
transportation, storage, and export and import terminals;
petrochemical and refined products transportation, storage, export
and import terminals and related services; and a marine
transportation business that operates primarily on the United
States inland and Intracoastal Waterway systems. The partnership’s
assets include approximately 49,300 miles of pipelines; 260 million
barrels of storage capacity for NGLs, crude oil, refined products
and petrochemicals; and 14 billion cubic feet of natural gas
storage capacity.
This press release includes “forward-looking statements” as
defined by the Securities and Exchange Commission. All statements,
other than statements of historical fact, included herein that
address activities, events, developments or transactions that
Enterprise and its general partner expect, believe or anticipate
will or may occur in the future are forward-looking statements.
These forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially
from expectations, including required approvals by regulatory
agencies, the possibility that the anticipated benefits from such
activities, events, developments or transactions cannot be fully
realized, the possibility that costs or difficulties related
thereto will be greater than expected, the impact of competition,
and other risk factors included in Enterprise’s reports filed with
the Securities and Exchange Commission. Readers are cautioned not
to place undue reliance on these forward-looking statements, which
speak only as of their dates. Except as required by law, Enterprise
does not intend to update or revise its forward-looking statements,
whether as a result of new information, future events or
otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20170410005360/en/
Enterprise Products Partners L.P.Randy Burkhalter, 713-381-6812
or 866-230-0745Investor RelationsorRick Rainey, 713-381-3635Media
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