Enterprise Completes Installation of Independence Hub Platform; Begins Earning Fees

abarrelfull wrote on 14 Jan 2014 08:46
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March 8, 2007

Enterprise Products Partners L.P. (NYSE:EPD) today announced that the Independence Hub production platform has been successfully installed at its deepwater site in the Mississippi Canyon area of the eastern Gulf of Mexico and has started earning demand revenues. Enterprise owns an 80 percent interest in the Independence Hub, with Helix Energy Solutions Group, Inc. owning the remaining 20 percent interest.

Located approximately 150 miles southeast of Venice, Louisiana in more than 8,000 feet of water, the Independence Hub is the deepest offshore platform ever installed in the world. The facility is also the largest in terms of production capacity, capable of handling up to 1 billion cubic feet per day (Bcf/d) of natural gas, which represents more than a 10 percent increase in current natural gas deliveries from the Gulf.

"The installation of the Independence Hub marks a major milestone in one of the most significant offshore projects ever developed," said Enterprise President and Chief Executive Officer Robert G. Phillips. "Credit for this outstanding achievement goes to our employees, customers, contractors and service companies who were clearly up to the challenge and worked together to complete the project. Besides the financial benefits of the project, those involved in this initiative can take satisfaction in knowing they made a significant contribution to securing an important source of domestic energy."

With the installation phase now complete, control of the Independence Hub will be transferred to Anadarko Petroleum Corporation (NYSE:APC) as platform operator for the group of producers developing the ten fields discovered to date. Production from the fields served by Independence is expected to begin in the second half of 2007.

The producer group is now in the process of installing flowline risers, which will transport production from the subsea wellheads to the Independence Hub, and Enterprise is installing the export pipeline riser that will transport natural gas from the platform to the 134-mile Independence Trail pipeline, which was installed in August of 2006. Owned 100 percent by Enterprise, Independence Trail will transport up to 1 Bcf/d of natural gas from the Independence Hub to the partnership's West Delta 68 platform, which connects to a third party pipeline that will deliver the gas onshore into Louisiana.

Phillips added, "The Independence project is an example of Enterprise's integrated midstream energy value chain philosophy in action. Once production begins, we will begin earning volumetric fees from the platform and the pipeline in addition to the monthly demand fees from the hub."

• Enterprise Completes Installation of Independence Hub Platform; Begins Earning Fees

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