Enterprise Products Focuses Attention On New Projects

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Enterprise Products Partners, Houston, recently announced a number of commitments and plans that will require upgrades to existing system and new construction. They include a transportation/marketing agreement with Eagle Ford Shale producers, the proposed expansion of the Rocky Mountain portion of its NGL pipeline system, an expansion of the partnership’s NGL import/export terminal on the Houston Ship Channel and an agreement to transport natural gas via the company’s Independence Trail Pipeline in the U.S. Gulf of Mexico.
  According to Enterprise, the agreement with Eagle Ford Shale producers in South Texas represents a commitment of 50,000 bpd of capacity on a new 140-mile, 24-inch diameter crude oil pipeline now being constructed. Scheduled to begin service in the second quarter of 2012, the pipeline has a capacity of 350,000 bpd and will offer shippers the flexibility to access major storage hubs and refining centers.
  Further highlighting the versatility and strategic importance of Enterprise’s Eagle Ford Shale crude oil pipeline system is its capability to link producers to a new crude oil storage facility the partnership is constructing on a 150-acre tract in southeast Houston. Scheduled to begin operations in mid-2012, the Crude Houston Terminal will feature access to major Texas Gulf Coast refiners in Texas City, Pasadena/Deerpark, Baytown and on the Houston Ship Channel. Besides providing Eagle Ford Shale producers with a market for their crude oil, refiners gain access to reliable, local sources of supplies to support expansion projects. In addition, domestic crude oil from the Eagle Ford Shale reduces the nation’s dependence on foreign sources to produce gasoline and other refined products.
  Enterprise, LLOG Exploration Company LLC and LLOG Deepwater Development Company LLC have executed interconnect and transportation agreements for natural gas production from four blocks in the Mississippi Canyon area of the Gulf of Mexico, including LLOG Exploration’s Who Dat field. The volumes will be delivered into Enterprise’s Independence Trail pipeline through a new 10-inch diameter, 17-mile natural gas export pipeline originating from the LLOG-operated Opti-Ex production platform that will be installed at Mississippi Canyon Block 547. The export pipeline will be owned by LLOG Deepwater Development. The Independence Trail pipeline will transport the natural gas volumes to an interconnect with Tennessee Gas Pipeline at Enterprise’s West Delta 68 platform.
  Global Industries Ltd. was awarded a contract for the project that includes the installation of 19 miles of 10-inch export oil pipeline, 17 miles of 14-inch gas pipeline, 10 miles of 6-inch insulated rigid flowlines, 6 flexible risers, nine jumpers and jumper tie-ins, three subsea manifolds, 6 PLETs, and other additional equipment.
  LLOG’s 10-inch diameter export pipeline will interconnect with Independence Trail at a subsea tee assembly that Enterprise pre-installed in more than 4,400 feet of water at Mississippi Canyon Block 553. This is one of several subsea assemblies that were pre-installed on Independence Trail when it was built in 2007. After LLOG’s tie-in, Independence Trail will have four tee assemblies available to accommodate additional export pipelines. Installation of the production platform at Mississippi Canyon Block 547 is expected in the second quarter of 2011, with first production scheduled to begin in the second half of 2011.
  Also, Enterprise Products Partners L.P. affiliate, Mid-America Pipeline Company LLC announced a binding open season running from March 29-April 29, 2011 to seek shipper support for a proposed expansion of the Rocky Mountain portion of its NGL pipeline system. Originating in the Rocky Mountain Overthrust and San Juan Basin oil and gas production areas, the 2,793-mile pipeline extends to Enterprise’s Hobbs fractionator in Gaines County, TX. At the Hobbs facility, the MAPL system links to the Seminole Pipeline, enabling shippers to access the world’s largest NGL fractionation complex at Mont Belvieu, TX, which includes facilities owned and operated by Enterprise affiliates.
  Depending on shipper response to the open season, the expansion project can be designed to add 45,000 to 85,000 bpd of incremental annual average capacity to the system to accommodate growing production in the region. The Rocky Mountain portion of the MAPL system currently has a capacity of 275,000 bpd.  Achieving the additional capacity would involve looping certain pipe sections and upgrades at existing pump stations. Provided there is sufficient shipper commitment, the additional capacity could be available as soon as the third quarter of 2014.