HOUSTON--(BUSINESS WIRE)--Apr. 10, 2017--
Enterprise Products Partners L.P. (NYSE:EPD) today announced the
construction of a new 571-mile pipeline to transport growing volumes of
natural gas liquids (“NGL”) from the Permian Basin to Enterprise’s NGL
fractionation and storage complex in Mont Belvieu, Texas. The Shin Oak
NGL pipeline will originate at Enterprise’s Hobbs NGL fractionation and
storage facility in Gaines County, Texas. The 24-inch diameter pipeline
will have an initial design capacity of 250,000 barrels per day (“BPD”),
expandable to 600,000 BPD. This project is supported by long-term
customer commitments and is expected to be in service in the second
quarter of 2019.
In addition to mixed NGL supplies aggregated at the Hobbs facility, the
Shin Oak pipeline will provide takeaway capacity for mixed NGLs
extracted at natural gas processing plants in the Permian region,
including two Enterprise facilities that began service in 2016 and the
Orla I plant that is scheduled to begin operations in the second quarter
of 2018. In tandem with Enterprise’s existing NGL pipelines, this new
pipeline will also increase the company’s capacity to transport purity
NGL products from Hobbs to Mont Belvieu.
Enterprise’s Mont Belvieu NGL complex is the largest of its kind in the
world, offering customers access to approximately 130 million barrels of
underground storage capacity, and 670,000 BPD of NGL fractionation
capability. Enterprise is building a ninth fractionator at Mont Belvieu
that will increase NGL fractionation capacity by 85,000 BPD following
its expected completion in the second quarter of 2018. Mont Belvieu is
pipeline-connected to the expanding U.S. petrochemical industry on the
Gulf Coast, as well as Enterprise’s industry-leading LPG and ethane
deepwater marine export terminals on the Houston Ship Channel.
“The Permian Basin is currently the hottest play in North America and is
expected to continue its strong growth for years to come,” said A.J.
“Jim” Teague, chief executive officer of Enterprise’s general partner.
“The Shin Oak pipeline project is part of Enterprise’s larger plans in
the Permian to leverage our integrated midstream assets to link supplies
of cost-advantaged U.S. hydrocarbons to the largest domestic and global
NGL markets. This additional pipeline takeaway capacity to Mont Belvieu
will provide Permian producers the flow assurance they need to continue
the unfettered development of their reserves with confidence.”
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 export and import terminals;
crude oil gathering, transportation, storage, and export and import
terminals; petrochemical and refined products transportation, storage,
export and import terminals and related services; and a marine
transportation business that operates primarily on the United States
inland and Intracoastal Waterway systems. The partnership’s assets
include approximately 49,300 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
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170410005360/en/
Source: Enterprise Products Partners L.P.
Enterprise Products Partners L.P.
713-381-6812 or 866-230-0745