Enterprise Begins Open Commitment Period for Texas Express Pipeline Capacity

abarrelfullabarrelfull wrote on 06 Oct 2011 05:34
Tags: enterprise ngl pipeline usa

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Enterprise Products Partners L.P. (NYSE: EPD), through itsTexas Express Pipeline LLC ("Texas Express") subsidiary, today announced the start of a binding open commitment period for available capacity on a new natural gas liquids (NGL) pipeline being developed by the company. The pipeline would originate from Skellytown, Texas in Carson County and extend approximately 580 miles to NGL fractionation and storage facilities in Mont Belvieu, Texas. The project is part of a recently announced joint venture that includes Enbridge Energy Partners, L.P. (NYSE: EEP), and Anadarko Petroleum (NYSE: APC).

The new Texas Express pipeline, in conjunction with the Mid-America Pipeline, will assist producers in West and Central Texas, the Rocky Mountains, Southern Oklahoma and the Mid-continent in maximizing the value of their natural gas production by providing additional takeaway capacity and enhanced access to the Gulf Coast NGL market. Initial capacity on Texas Express will be approximately 280,000 barrels per day ("BPD"), which can be readily expanded to approximately 400,000 BPD or more depending on shipper interest. The pipeline is expected to begin service in the second quarter of 2013.

"While the pipeline is anchored by long-term commitments, all interested parties will have an opportunity during the open commitment period to sign up for capacity on the system, which offers access to the largest domestic NGL market located along the Gulf Coast," said A.J. "Jim" Teague, executive vice president and chief operating officer of Enterprise's general partner. "Interest in the project has been very high. Producers find our project very appealing since it provides a lower-cost fee structure when compared to other announced projects. In addition, it gives them the opportunity to sculpt their volume commitments to match their production ramp-up while offering a one-time, future option to increase their volume commitment."

The open commitment period will begin October 5, 2011 at 12 noon CDT and continues until 5 p.m. CST November 9, 2011. Additional details, including a Notice of Open Commitment and a Transportation Services Agreement form, will be distributed to shippers. Requests for additional information may be directed to Buford Barr at (713) 381-8354 or moc.dorpe|rrabb#moc.dorpe|rrabb, as well as Bryan McFarland at (713) 381-2468 or moc.dorpe|dnalrafcmb#moc.dorpe|dnalrafcmb.

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