Enterprise Announces NGL Expansion Projects

abarrelfull wrote on 13 Jan 2014 14:37
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Jan. 18, 2005

Enterprise Products Partners L.P. (NYSE:EPD) today announced a project to expand its natural gas liquids ("NGL") fractionator at the partnership's Mont Belvieu complex to facilitate the increased production of NGLs in the Rocky Mountain area. Enterprise's Mont Belvieu fractionator currently has the capacity to fractionate up to 210,000 barrels per day of NGLs from eight supply connections. The partnership has started construction to increase total fractionation capacity by 15,000 barrels per day and reduce the energy costs of the existing facility. This project is expected to be complete in the fourth quarter of 2005.

Additionally, the partnership has completed initial engineering and design work on a new NGL fractionator that would add an additional 60,000 barrels per day of fractionation capacity at Mont Belvieu. This project would facilitate increased volumes available at Mont Belvieu as a part of the partnership's plan to expand transportation capacity on the Rocky Mountain segment of the partnership's Mid-America pipeline system.

The Rocky Mountain segment of the Mid-America Pipeline System transports up to 225,000 barrels per day of NGLs from the major producing basins in Wyoming, Utah, Colorado and New Mexico to the Hobbs station on the New Mexico-Texas border. The western expansion project would increase the capacity of this pipeline to 275,000 barrels per day. Permitting, engineering and design work are in progress. The partnership expects to submit its environmental assessment and plan of development to the appropriate regulatory agencies during the first quarter of 2005. Construction could begin as early as the fourth quarter of 2005 after permits and regulatory approvals are received. As a result of the sequenced nature of the construction of pipeline looping and horsepower additions, incremental capacity on the pipeline can be placed into service throughout the construction period.

"One of the primary sources of new natural gas and associated NGL production to supply the increasing U.S. demand is expected to come from the prolific Rocky Mountain producing basin," stated O.S. "Dub" Andras, Enterprise's vice chairman and chief executive officer. "This region has been and is expected to continue to be one of the nation's most active areas in terms of exploration and development. As a result of this strong drilling activity and increased NGL production, the Rocky Mountain segment of our Mid-America pipeline is running near full capacity and NGLs that are either dedicated to our partnership or our NGL fractionator at Mont Belvieu continue to exceed this facility's fractionation capacity. These projects will enhance our midstream energy value chain as the incremental volumes will be stored and distributed utilizing our existing facilities."

• Enterprise Announces NGL Expansion Projects

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