Enterprise to Build New Crude Oil and Condensate Pipeline from Midland to Houston
April 30 2015 - 6:32PM
Business Wire
Enterprise Products Partners L.P. (NYSE:EPD) today announced it
has executed long-term agreements that support development of a new
416-mile, 24-inch diameter pipeline to transport crude oil and
condensate from the company’s Midland, Texas terminal to its Sealy
storage facility west of Houston. From Sealy, the new pipeline
would link to Enterprise’s ECHO terminal through an interconnect
with the Rancho II pipeline, which is scheduled to be in service in
July 2015. Through ECHO, customers will have direct access to every
refinery in Houston, Texas City, Beaumont and Port Arthur, as well
as Enterprise’s dock facilities.
The new pipeline will have the capability to provide up to
540,000 barrels per day (“BPD”) of take-away capacity for growing
volumes of crude oil, and condensate from the Permian Basin.
Service is expected to begin in the second quarter of 2017.
The hydrocarbons will be gathered by trucks and pipelines into
Enterprise’s Midland terminal and then delivered in up to four
segregated batches to Sealy. The different grades of hydrocarbons
handled by the Midland-to-Sealy pipeline include West Texas Sour,
West Texas Intermediate, Light West Texas Intermediate and
condensate. Enterprise is in the process of adding incremental
storage capacity to support the new pipeline and the existing West
Texas Gathering System.
“The commitments we received for the Midland-to-Sealy pipeline
reflect the long-term, positive outlook producers have for the
Permian Basin and the value provided by this logical expansion of
our integrated energy value chain,” said Michael A. Creel, chief
executive officer of Enterprise’s general partner. “In addition to
facilitating crude oil and condensate production from one of our
most important domestic basins, the Midland-to-Sealy pipeline will
provide customers with adequate supply out of the Permian Basin and
unsurpassed market access to the vast Gulf Coast refining complex,
as well as dock access necessary for growing export
opportunities.”
Creel added, “Proper segregation is essential when transporting
batched products and we take that responsibility very seriously. In
support of that commitment Enterprise has implemented a system
designed to ensure the company complies with all appropriate
regulations.”
Enterprise now has approximately $7.5 billion of capital growth
projects under construction, several of which will benefit
customers on the new Midland-to-Sealy pipeline. Specifically, the
36-inch diameter Rancho II pipeline, which extends 88 miles from
Sealy, to the ECHO terminal, will have over one million BPD of
capacity for crude oil and condensate from the Permian Basin and
the Eagle Ford Shale.
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 import and export terminals; crude oil and refined
products transportation, storage and terminals; offshore production
platforms; petrochemical transportation and services; and a marine
transportation business that operates primarily on the United
States inland and Intracoastal Waterway systems and in the Gulf of
Mexico. The partnership’s assets include approximately 51,000 miles
of onshore and offshore pipelines; 225 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.
Enterprise Products Partners L.P.Randy Burkhalter,
713-381-6812Investor RelationsorRick Rainey, 713-381-3635Media
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