Enterprise Products Partners Expands Crude Oil and Natural Gas Infrastructure in South Texas

Strategic Insights -

Enterprise Products Partners L.P. is expanding its network of crude oil and natural gas assets in South Texas through a letter of intent (LOI) with a major Eagle Ford Shale producer. The partnership will construct a 140-mile crude oil pipeline connecting Karnes County, Texas to its existing crude oil system in Austin County, Texas, with a capacity to serve multiple producers as output in the Eagle Ford Shale region continues to increase. This expansion project, in addition to constructing central delivery points in three locations along the new pipeline, is expected to be completed in the fourth quarter of 2011.

Key Takeaways:

  • Enterprise Products Partners L.P. is expanding its crude oil and natural gas infrastructure in South Texas through a letter of intent (LOI) with a major Eagle Ford Shale producer.
  • The partnership will construct a 140-mile crude oil pipeline connecting Karnes County, Texas to its existing crude oil system in Austin County, Texas.
  • The pipeline will have a capacity to serve multiple producers, serving the increasing output in the Eagle Ford Shale region.
  • The expansion project, in addition to constructing central delivery points in three locations along the new pipeline, is expected to be completed in the fourth quarter of 2011.
  • The LOI also includes a seven-year natural gas transportation and processing agreement.
  • Enterprise is in discussions with a number of other producers to provide crude oil transportation services through additional connections to the pipeline.
  • The partnership is also constructing significant additions to its natural gas gathering, processing and storage system and its NGL transportation and fractionation network serving South Texas producers.
  • Activity in the Eagle Ford Shale continues to exceed industry expectations, with approximately 50 rigs working in the play having drilled more than 130 wells.

Statistics:

  • 140-mile crude oil pipeline connecting Karnes County, Texas to Austin County, Texas.
  • The pipeline will have a capacity to serve multiple producers.
  • 7-year natural gas transportation and processing agreement.
  • Approximately 50 rigs working in the Eagle Ford Shale have drilled more than 130 wells.
  • Current production from the play is estimated at approximately 190 million cubic feet per day of natural gas and 10,000 barrels per day of crude oil.

Sources:

  • Energy Weekly News editors, "Enterprise Products Partners Expands Crude Oil and Natural Gas Infrastructure in South Texas", Copyright 2010, Energy Weekly News via VerticalNews.com.