|Enterprise Announces Long Term Transportation Agreements To Anchor Mid-America Pipeline Expansion|
HOUSTON--(BUSINESS WIRE)--Aug. 15, 2006--Enterprise Products Partners L.P. (NYSE:EPD) announced today that its subsidiary, Mid-America Pipeline Company LLC ("Mid-America") has executed new long-term transportation agreements with all but one of its current shippers on the Rocky Mountain Pipeline System pursuant to the terms and conditions of Mid-America's open season tariff that was accepted by the Federal Energy Regulatory Commission ("FERC") to be effective as of August 6, 2006. Under the terms of the agreements, shippers have committed to transport all of their current and future natural gas liquids ("NGLs") production from the Rockies through Mid-America to either the Hobbs fractionator or to Mont Belvieu, Texas via the Seminole pipeline system for a minimum of 10 years and up to a maximum of 20 years. One of the shipper transportation agreements is subject to further ratification by such shipper's executive management. Based upon shipper production forecasts and current NGL extraction rates, Mid-America Pipeline expects that its current pipeline capacity of 225,000 barrels per day and its expansion capacity of 50,000 barrels per day will be fully utilized.
In December 2005, Enterprise announced a project to expand the transportation capacity of Mid-America's Rocky Mountain pipeline system by 50,000 barrels per day to facilitate the increase in production of NGLs in the Rocky Mountain area. Construction of the expansion project commenced in the second quarter of 2006 and is expected to be completed in phases through mid-2007. The expansion project will add 30,000 barrels per day of capacity by the end of 2006 from pipeline looping, and an additional 20,000 barrels per day of capacity will be added as a result of horsepower upgrades from the construction of new pump stations that are expected to be completed in mid-2007.
Last year Enterprise announced two fractionation projects downstream of the pipeline expansion that were also designed to accommodate increased production of NGLs out of the Rockies. Combined, the two projects will increase the Partnership's fractionation capacity by a total of 90,000 barrels per day. The first project, completed in April 2006, added 15,000 barrels per day of capacity to the existing NGL fractionator at Mont Belvieu, Texas. The second project, to be completed in the third quarter of 2007, is the construction of a 75,000 barrel per day NGL fractionator and related storage facilities at the interconnection of the Mid-America Pipeline and the Seminole Pipeline systems at Enterprise's Hobbs location near the border of Texas and New Mexico.
"We are pleased by the response of our shippers during the recent open season for expansion capacity on the Mid-America Rocky Mountain pipeline system. These shipper dedications highlight the attractiveness of the Mid-America pipeline system as an efficient and cost effective transporter of growing NGL production out of the Rockies to consuming markets," stated Robert G. Phillips, Enterprise President and Chief Executive Officer. "The long term agreements will anchor our current expansion and positions the Mid-America Rocky Mountain system for further expansions in the future as drilling activity in the Rockies continues."
Enterprise Products Partners L.P. is one of the largest publicly traded energy partnerships with an enterprise value of approximately $16 billion, and is a North American provider of midstream energy services to producers and consumers of natural gas, NGLs and crude oil. Enterprise transports natural gas, NGLs and crude oil through approximately 33,840 miles of onshore and offshore pipelines. Services include natural gas transportation, gathering, processing and storage; NGL fractionation (or separation), transportation, storage, and import and export terminaling; crude oil transportation and offshore production platform services. For more information, visit Enterprise on the web at www.epplp.com. Enterprise Products Partners L.P. is managed by its general partner, Enterprise Products GP LLC, which is wholly owned by Enterprise GP Holdings L.P. (NYSE:EPE). For more information on Enterprise GP Holdings L.P., visit its website at www.enterprisegp.com.
This press release contains various forward-looking statements and information that are based on Enterprise's beliefs and those of its general partner, as well as assumptions made by and information currently available to Enterprise. When used in this press release, words such as "anticipate," "project," "expect," "plan," "goal," "forecast," "intend," "could," "believe," "may," and similar expressions and statements regarding the plans and objectives of Enterprise for future operations, are intended to identify forward-looking statements. Although Enterprise and its general partner believe that such expectations reflected in such forward-looking statements are reasonable, neither Enterprise nor its general partner can give assurances that such expectations will prove to be correct. Such statements are subject to a variety of risks, uncertainties and assumptions. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, Enterprise's actual results may vary materially from those Enterprise anticipated, estimated, projected or expected. Among the key risk factors that may have a direct bearing on Enterprise's results of operations and financial condition are:
-- fluctuations in oil, natural gas and NGL prices and production due to weather and other natural and economic forces;
-- a reduction in demand for its products by the petrochemical, refining or heating industries;
-- the effects of its debt level on its future financial and operating flexibility;
-- a decline in the volumes of NGLs delivered by its facilities;
-- the failure of its credit risk management efforts to adequately protect it against customer non-payment;
-- terrorist attacks aimed at its facilities; and
-- the failure to successfully integrate its operations with assets or companies, if any that it may acquire in the future.
Enterprise has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
CONTACT: Enterprise Products Partners L.P.
SOURCE: Enterprise Products Partners L.P.