Enterprise Products To Extend Eagle Ford Shale Oil Pipeline

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Enterprise Products Partners L.P. plans an 80-mile extension of its 350,000 bpd Eagle Ford Shale crude oil pipeline in southwest Texas that would allow the partnership to serve growing production areas in the southwestern portion of the play. The Phase II project would originate in Wilson County, TX at the terminus of the partnership’s previously announced 140-mile Phase I segment, and extend to a site near Gardendale, TX in La Salle County, where a new central delivery point is planned for construction that will feature 500,000 bbls of storage. Phase I is on schedule to begin service by the second quarter of 2012, with Phase II set to commence operations in the first quarter of 2013. When completed, the approximately 220-mile crude oil pipeline system will provide Eagle Ford Shale producers with access to the Texas Gulf Coast refining complex through Enterprise’s integrated midstream network.
  The Phase II extension, which is being designed with a capacity of 200,000 bpd, is anchored by a 10-year agreement with Chesapeake Energy Marketing, Inc., a subsidiary of Chesapeake Energy Corporation. As part of the long-term contract, Chesapeake has committed to 100,000 bpd of firm crude oil transportation capacity.
  The Phase II project will address the lack of pipeline infrastructure in the southwestern crude oil production region of the Eagle Ford Shale and provide shippers with access to Enterprise’s Sealy, TX delivery point. The Sealy facility interconnects with the partnership’s Rancho Pipeline and feeds into Enterprise’s new ECHO crude oil storage terminal being constructed at a location along the Houston Ship Channel in southeast Harris County, TX. The pipeline options available to shippers via the terminal would provide access to more than 2 MMbpd of refining capacity in the Houston area.