Enterprise MAPL Shippers More Than Double Commitments for Rocky Mountain Expansion

abarrelfull wrote on 13 Jan 2012 06:30
Tags: enterprise pipeline usa

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Enterprise Products Partners L.P. (NYSE:EPD) today announced that shippers who executed 10-year, firm transportation agreements in May 2011 on the partnership’s Mid-America Pipeline (“MAPL”) Rocky Mountain expansion project have exercised options that increase their total commitments by approximately 115 percent to 82,500 barrels per day (“BPD”). During the original four-week open season that ended April 29, 2011, shippers committed to an initial capacity of 38,500 BPD. The committed shipper transportation rate to Mont Belvieu, which is subject to annual escalation, is 15.1 cents per gallon.

The project, which received Federal Energy Regulatory Commission approval in August 2011, involves looping the existing system with 263 miles of 16-inch diameter pipeline, as well as pump station modifications. The additional capacity is designed to accommodate growing natural gas and natural gas liquids (“NGL”) production from major basins in Utah, Colorado, Wyoming and New Mexico. Several new natural gas processing plants are being constructed in the Uinta, Piceance, and Greater Green River basins that will fill the expansion, which is expected to begin service in the third quarter of 2014.

“We are pleased with the strong demand for this expansion of the Mid-America Pipeline system,” said A.J. “Jim” Teague, executive vice president and chief operating officer of Enterprise’s general partner. “The expansion enables producers to maximize the value of their Rocky Mountain NGL production by providing them access to the largest domestic NGL market located on the Texas Gulf Coast. Additionally, the Rocky Mountain expansion project complements our Texas Express Pipeline joint venture, and enhances value chain growth opportunities for Enterprise’s integrated processing, pipeline, storage, fractionation and distribution network.”

• Enterprise MAPL Shippers More Than Double Commitments for Rocky Mountain Expansion

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