Enterprise Products Partners L.P.today announced it will convert one of its natural gas liquids (NGL) pipelines that transports NGLs from the Permian Basin to the Texas Gulf Coast to crude oil service. The conversion is expected to be finished in the first half of 2020 and would provide the partnership with total crude oil pipeline capacity of over 650,000 barrels per day (bpd) from the Permian Basin to Enterprise’s crude oil hub in the Houston area.
Enterprise has three existing NGL pipelines that stretch from the Permian Basin to the Texas Gulf Coast: the Seminole Blue, Seminole Red and Chaparral. The Shin Oak NGL pipeline, which is currently under construction, will be the partnership’s fourth NGL pipeline from the Permian Basin to the Texas Gulf Coast and is expected to be in service in the second quarter of 2019. The completion of the Shin Oak pipeline provides Enterprise the flexibility to divert NGL volumes from at least one of its existing NGL pipelines onto Shin Oak and repurpose the vacated NGL pipeline to crude oil service. Enterprise is currently evaluating which NGL pipeline to repurpose.
“We have had strong demand for crude oil transportation, storage and marine terminal services for crude oil production from the Permian Basin,” said A.J. “Jim” Teague, chief executive officer of the general partner of Enterprise Products Partners. “This repurposing of an NGL pipeline to crude oil service is another example of our system flexibility and the innovation of our employees to respond to customer needs while increasing the distributable cash flow and value of our partnership.