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Gas industry

Enterprise Products Partners L.P. and Anadarko Petroleum Corporation Sign Long-Term Agreements for Gas Transportation and Processing Services

Strategic Insights

— 2 min read

Enterprise Products Partners L.P. has announced the signing of long-term agreements with Anadarko Petroleum Corporation to provide comprehensive natural gas transportation and processing, and NGL fractionation and transportation services in the Eagle Ford Shale in South Texas. The partnership will construct a new 17-mile pipeline, connecting Anadarko's central production facilities in Dimmit County, Texas, to Enterprise's existing South Texas pipeline system. The new pipeline is expected to be operational in late-October 2010.

Key Takeaways:

  • Enterprise Products Partners L.P. will construct a 17-mile pipeline connecting Anadarko Petroleum Corporation's central production facilities in Dimmit County, Texas, to Enterprise's existing South Texas pipeline system.
  • The pipeline is expected to be operational in late-October 2010 and will facilitate Anadarko's growing liquids-rich natural gas production in the Eagle Ford Shale.
  • The partnership will provide a comprehensive package of natural gas transportation and processing, and NGL fractionation and transportation services to Anadarko for six years.
  • Enterprise will construct new infrastructure in the Eagle Ford Shale, including a cryogenic gas processing plant in Lavaca County, Texas, which will increase processing capacity by 600 MMcf/d in mid-2012.
  • Activity in the Eagle Ford Shale is increasing, with approximately 100 rigs working in the play, having drilled more than 175 wells, and approximately 150 additional wells in various stages of drilling and completion.
  • Total current production from the play is estimated at approximately 300 MMcf/d of natural gas and 40,000 barrels per day of crude oil and condensate.

Statistics:

  • 17-mile: The length of the new pipeline to be constructed by Enterprise Products Partners L.P. to link Anadarko Petroleum Corporation's central production facilities in Dimmit County, Texas, to Enterprise's existing South Texas pipeline system.
  • 20-inch diameter: The diameter of the new pipeline to be constructed by Enterprise Products Partners L.P.
  • 2010 (late October): The expected completion date of the new pipeline.
  • 1.5 billion cubic feet per day: The current processing capacity at Enterprise's existing facilities in South Texas.
  • 600 MMcf/d: The increase in processing capacity expected at mid-2012 with the completion of Enterprise's cryogenic gas processing plant in Lavaca County, Texas.
  • 100 rigs: The number of rigs working in the Eagle Ford Shale, having drilled more than 175 wells.
  • 300 MMcf/d: The total current production of natural gas from the Eagle Ford Shale.
  • 40,000 barrels per day: The total current production of crude oil and condensate from the Eagle Ford Shale.

Sources:

  • Enterprise Products Partners L.P. (NYSE:EPD) press release.
  • Anadarko Petroleum Corporation (NYSE:APC) press release.
  • Energy Weekly News editors.

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