Enterprise/Energy Transfer Seeks Shipper Interest In Pipeline

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Enterprise Partners L.P. and Energy Transfer Partners, L.P. are holding a binding open commitment period for available capacity on a proposed crude oil pipeline from Cushing, OK to Houston as part of a 50/50 joint venture between the two partnerships. The 584-mile Double E pipeline would provide up to 450,000 bpd of takeaway capacity for crude oil currently stranded at the Cushing storage hub because of a lack of southbound pipeline infrastructure. The project would offer shippers greater access to the Gulf Coast refining complex, while providing refiners with a reliable, domestic source of crude oil as an alternative to higher priced imported crude oil that currently represents their largest source of supply. With Midcontinent crude oil production rapidly increasing, supplies from Canada on the rise and the development of shale plays such as the Bone Springs/Avalon, Bakken and Barnett continuing at a strong pace, the new pipeline is expected to remain a key outlet for crude oil bound for the Gulf Coast market.
  As currently designed, the Double E pipeline would utilize approximately 230 miles of existing natural gas pipeline owned by Energy Transfer that would be converted to crude oil service, and 354 miles of new construction that would follow existing pipeline corridors. With approximately 40% of the pipeline already in the ground, the planned project offers an expedient and cost-effective solution for the industry. Additionally, approximately 500,000 bbls of crude oil storage capacity being constructed at Enterprise’s ECHO terminal in southeast Harris County would be jointly owned by the joint venture partners.
  Subject to customer commitments and required approvals, the Double E pipeline is expected to begin service in the fourth quarter of 2012.