Enterprise to Convert NGL Pipeline from Permian Basin to Crude Oil Service
December 06 2017 - 7:00AM
Business Wire
Enterprise Products Partners L.P. (NYSE: EPD) today announced
plans to convert one of its natural gas liquids (“NGL”) pipelines
that transports NGLs from the Permian Basin to the Texas Gulf Coast
to crude oil service. The conversion is expected to be completed in
the first half of 2020. This pipeline conversion would provide the
partnership with total crude oil pipeline capacity of over 650,000
barrels per day (“BPD”) from the Permian Basin to Enterprise’s
crude oil hub in the Houston area.
Enterprise has three existing NGL pipelines that stretch from
the Permian Basin to the Texas Gulf Coast: the Seminole Blue,
Seminole Red and Chaparral. The Shin Oak NGL pipeline, which is
currently under construction, will be the partnership’s fourth NGL
pipeline from the Permian Basin to the Texas Gulf Coast. The Shin
Oak pipeline is expected to be in service in the second quarter of
2019. The completion of the Shin Oak pipeline provides Enterprise
the flexibility to divert NGL volumes from at least one of its
existing NGL pipelines onto Shin Oak and repurpose the vacated NGL
pipeline to crude oil service. Enterprise is currently evaluating
which NGL pipeline(s) to repurpose.
“We have had strong demand for crude oil transportation, storage
and marine terminal services for crude oil production from the
Permian Basin,” said A.J. “Jim” Teague, chief executive officer of
the general partner of Enterprise. “This repurposing of an NGL
pipeline to crude oil service is another example of our system
flexibility and the innovation of our employees to respond to
customer needs while increasing the distributable cash flow and
value of our partnership.”
Enterprise Products Partners L.P. is one of the largest publicly
traded partnerships and a leading North American provider of
midstream energy services to producers and consumers of natural
gas, NGLs, crude oil, refined products and petrochemicals. Our
services include: natural gas gathering, treating, processing,
transportation and storage; NGL transportation, fractionation,
storage and import and export terminals; crude oil gathering,
transportation, storage and terminals; petrochemical and refined
products transportation, storage and terminals; and a marine
transportation business that operates primarily on the United
States inland and Intracoastal Waterway systems. The partnership’s
assets include approximately 50,000 miles of pipelines; 260 million
barrels of storage capacity for NGLs, crude oil, refined products
and petrochemicals; and 14 billion cubic feet of natural gas
storage capacity.
This press release includes “forward-looking statements” as
defined by the Securities and Exchange Commission. All statements,
other than statements of historical fact, included herein that
address activities, events, developments or transactions that
Enterprise and its general partner expect, believe or anticipate
will or may occur in the future are forward-looking statements.
These forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially
from expectations, including required approvals by regulatory
agencies, the possibility that the anticipated benefits from such
activities, events, developments or transactions cannot be fully
realized, the possibility that costs or difficulties related
thereto will be greater than expected, the impact of competition,
and other risk factors included in Enterprise’s reports filed with
the Securities and Exchange Commission. Readers are cautioned not
to place undue reliance on these forward-looking statements, which
speak only as of their dates. Except as required by law, Enterprise
does not intend to update or revise its forward-looking statements,
whether as a result of new information, future events or
otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20171206005185/en/
Enterprise Products Partners L.P.Randy Burkhalter, (713)
381-6812 or (866) 230-0745Investor RelationsorRick Rainey, (713)
381-3635Media Relations
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