Enterprise and Energy Transfer Extend Open Commitment Period for Capacity on Cushing to Houston Crude Oil Pipeline

abarrelfullabarrelfull wrote on 09 Jul 2011 05:56
Tags: enterprise pipeline usa

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Enterprise Products Partners L.P. (NYSE: EPD) and Energy Transfer Partners, L.P. (NYSE: ETP) today announced a three-week extension of the binding open commitment period for capacity on the proposed Double E Crude Oil Pipeline from Cushing, Oklahoma to Houston. The commitment period, which now concludes July 29, 2011 at 5 p.m. CDT, is intended to give interested shippers the time they need to obtain final internal approvals and complete the required Transportation Services Agreement.

The Double E Pipeline would provide up to 450,000 barrels per day (BPD) of takeaway capacity for crude oil currently stranded at the Cushing storage hub because of a lack of southbound pipeline infrastructure. The project, which would be designed and developed as a 50/50 joint venture between Enterprise and Energy Transfer, offers 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.

Along with providing the industry with an expedient and cost-effective takeaway solution, the Double E Pipeline would feature connectivity to multiple facilities at the points of origin and destination, including access to locations along the Gulf of Mexico that offer marine terminal loading capabilities, helping to ensure market choice for shippers and the flexibility to maximize the value of their commodity. To promote operational efficiency, the joint venture partners would also construct and own approximately 500,000 barrels of crude oil storage capacity at Enterprise's ECHO terminal in southeast Harris County, Texas. Subject to sufficient customer commitments and required approvals, the Double E Pipeline is expected to begin service in the fourth quarter of 2012.

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