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Gas industry

Enterprise Products Partners L.P. Expands Midstream Energy Infrastructure

Strategic Insights

— 2 min read

Enterprise Products Partners L.P. (NYSE:EPD) and its affiliate, Duncan Energy Partners L.P. (NYSE:DEP), have made significant announcements regarding the expansion of their midstream energy infrastructure. The company will increase the capacity of its Acadian Gas pipeline by 200 million cubic feet per day, while also expanding its State Line natural gas gathering system in Northwest Louisiana. These expansions will provide additional access to end-use customers and markets across the eastern United States for producers developing the Haynesville Shale.

Key Takeaways:

  • The Haynesville Extension pipeline, an expansion of the Acadian Gas intrastate natural gas pipeline system, will increase total capacity commitments by 200 million cubic feet per day to serve producers in the Haynesville Shale area of Northwest Louisiana.
  • The expansion of the State Line system will increase capacity from approximately 400 million cubic feet per day (MMcf/d) to 700 MMcf/d, providing an immediate solution for producers in southern DeSoto Parish.
  • Acadian Gas LLC is 66% owned by Duncan Energy and 34% owned by Enterprise Products Partners L.P., while Enterprise owns the general partner of Duncan Energy and approximately 58% of its outstanding common units.
  • The Haynesville Extension is expected to be completed in the third quarter of 2011, while the State Line expansion is scheduled to be completed in June 2010 and the expansion of the treating facilities is expected to be completed in the fourth quarter of 2010.
  • Enterprise Products Partners L.P. plans to add two amine units, each with a circulation rate of 700 gallons per minute, to its Battlefield and Keatchie treating facilities, providing up to 350 MMcf/d of incremental treating capacity.
  • Enterprise's CEO, Michael A. Creel, emphasized the importance of the expansions in meeting volume growth and demand for treating services, stating that "we are on track to quickly have the Haynesville Extension fully contracted."

Statistics:

  • 200 million cubic feet per day (MMcf/d): The increase in total capacity commitments of the Haynesville Extension pipeline.
  • 400 MMcf/d: Current capacity of the State Line system.
  • 700 MMcf/d: Expected capacity of the expanded State Line system.
  • 66%: Ownership stake of Duncan Energy in Acadian Gas LLC.
  • 34%: Ownership stake of Enterprise Products Partners L.P. in Acadian Gas LLC.
  • 58%: Ownership stake of Enterprise Products Partners L.P. in Duncan Energy.
  • 49,100 miles: Mileage of Enterprise's onshore and offshore pipelines.
  • 190 million barrels: Storage capacity for NGLs, refined products, and crude oil.
  • 27 billion cubic feet: Natural gas storage capacity.
  • 2010: Year in which the State Line expansion is scheduled to be completed.
  • 2011: Year in which the Haynesville Extension is expected to be completed.

Sources:

  • Enterprise Products Partners L.P. (NYSE:EPD) - press release
  • Duncan Energy Partners L.P. (NYSE:DEP) - press release
  • Energy Weekly News - article via VerticalNews.com (c) 2010.

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