Southern Union and Enterprise Sign Long-Term Natural Gas Liquids Fractionation Agreement

abarrelfull wrote on 14 Jan 2014 12:51
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Feb. 17, 2009

SUG Energy, LLC, a subsidiary of Southern Union Company (NYSE:SUG), and Enterprise Products Operating LLC, an affiliate of Enterprise Products Partners L.P. (NYSE:EPD), today announced they have entered into a 10-year, natural gas liquids (NGL) fractionation agreement.

The agreement provides Southern Union with up to 38,000 barrels per day (BPD) of firm fractionation capacity at Enterprise's Mont Belvieu, Texas, facility beginning January 1, 2010.

“In light of growing NGL volumes from the Rockies and Midcontinent, which could impact the future availability of fractionation capacity, we felt it prudent to secure long-term, reliable capacity for our NGL volumes produced in the Permian Basin,” said Roger A. Farrell, Southern Union's senior vice president, midstream operations. “Enterprise is well positioned, with both existing and planned infrastructure, to provide flexible, reliable and cost-effective fractionation services for our product.”

A.J. “Jim” Teague, Enterprise's executive vice president and chief commercial officer, said, “This agreement is a clear illustration of our ongoing strategy to utilize the core assets that comprise our integrated energy value chain as a foundation for building mutually beneficial, long-term relationships. As the largest NGL hub in the country, Enterprise's Mont Belvieu complex is a strategically important component of the nation's energy infrastructure, and we look forward to providing Southern Union with additional business opportunities to maximize the value of their midstream operations.”

With capacity of 225,000 BPD, Enterprise's Mont Belvieu facility is the world's largest fractionation complex, and accesses the largest concentration of refineries and petrochemical plants in the world. Enterprise also has more than 100 million barrels of liquids storage capacity at Mont Belvieu.

• Southern Union and Enterprise Sign Long-Term Natural Gas Liquids Fractionation Agreement

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