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

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 originating in Karnes County, Texas, and connecting to its existing crude oil system in Austin County, Texas. This expansion project is expected to be completed in the fourth quarter of 2011.

Key Takeaways:

• Enterprise will construct a 140-mile crude oil pipeline originating in Karnes County, Texas, and connecting to its existing crude oil system in Austin County, Texas.
• The partnership is in discussions with multiple producers to provide crude oil transportation services through additional connections to the pipeline.
• The new pipeline will provide access to the refining markets in the Houston area and the major storage hub in Cushing, Oklahoma through the Enterprise-operated Seaway pipeline.
• The capacity of the new pipeline will be sized to serve multiple producers as output in the Eagle Ford Shale region continues to increase.
• Enterprise is constructing central delivery points in three locations along the new pipeline to receive crude oil from gathering lines and trucks.
• The LOI also contains a seven-year natural gas transportation and processing agreement, which includes significant additions to Enterprise's natural gas gathering, processing, and storage system and its NGL transportation and fractionation network serving South Texas producers.
• The expansion project will enable Enterprise to diversify its operations and generate incremental cash flow while limiting capital costs.

Statistics:

• 140-mile crude oil pipeline to be constructed
• 3 central delivery points to be constructed along the pipeline
• 7-year natural gas transportation and processing agreement
• $X billion (not specified in the text, but mentioned as an expansion project)
• X% increase in output in the Eagle Ford Shale region (needs to be specified, not mentioned in the text)
• Enterprise's ability to utilize its vast South Texas infrastructure network as a foundation to pursue incremental projects

Sources:

• Enterprise Products Partners L.P. news release
• Euclid Infotech Pvt. Ltd.
• Syndigate.info an Albawaba.com company

Note: The statistics section is incomplete as the original text does not provide specific numbers for $X billion and X% increase in output in the Eagle Ford Shale region.