HOUSTON, May 12, 2010 (BUSINESS WIRE) --Enterprise Products Partners L.P. (NYSE:EPD) and Duncan Energy Partners L.P. (NYSE:DEP) today announced an expansion initiative at their jointly-owned Shoup and Armstrong facilities in South Texas, which provide natural gas processing and natural gas liquids (NGLs) fractionation services. The upgrades are part of a more comprehensive plan to expand the partnerships' midstream infrastructure in South Texas to handle increasing natural gas production from the growing Eagle Ford Shale play.
"This project further demonstrates the value of our existing assets in South Texas, which serve as the foundation for our strategy of focusing on the efficient and creative use of capital to generate attractive returns from increasing activity and higher demand for midstream services in the Eagle Ford Shale," said Michael A. Creel, Enterprise president and chief executive officer. "These expansions will not only give us the flexibility to accommodate more volumes, but should also position us to capture additional value from the various physical qualities of the natural gas, particularly the high NGL content, that are characteristic of Eagle Ford Shale production."
At the Shoup facility, located in Nueces County, Texas, the focus is on modifying existing fractionation equipment, which would increase its capacity to 77,000 barrels per day (BPD). The work is expected to be completed in the second quarter of 2010. Incremental volumes of NGLs to fill the additional capacity are expected to be supplied by six existing Enterprise natural gas plants currently feeding the Shoup facility. Production from these plants is expected to increase significantly over the next six months as the quantity and quality of the gas supplies increase.
Modifications to existing infrastructure at the Armstrong plant in DeWitt County, Texas, are designed to increase its fractionation capacity to more than 20,000 BPD. Supply for the increase in fractionation capacity at Armstrong will be enhanced by an efficiency improvement at the on-site natural gas processing plant. The improvements in processing capabilities, which are scheduled for completion in the fourth quarter of 2010, are expected to significantly increase NGL recoveries. Additionally, the gas plant and fractionator upgrades will allow Armstrong to handle the more liquid-rich natural gas that comprises much of the reserves in the Eagle Ford Shale.
Pipeline Construction Update
Elsewhere in the Eagle Ford Shale, Enterprise continues to move forward on two key natural gas pipeline construction projects that are expected to provide more than 200 million cubic feet per day of incremental transportation capacity. The final segment of pipeline that completes the White Kitchen Lateral is scheduled for completion in mid-July 2010. The 62-mile White Kitchen Lateral, which runs through the heart of the Eagle Ford Shale in the Texas counties of LaSalle and Webb, connects two existing Enterprise 20-inch diameter pipelines that lie at the northern and southern edges of the play.
Construction is also nearing completion on the first segment of the major east-west Eagle Ford Shale Mainline project. The 34-mile, 24-inch diameter pipeline, which will connect the partnerships' South Texas pipeline in southwest LaSalle County to the White Kitchen Lateral, is expected to be completed by June 1, 2010.
Enterprise Products Partners L.P. is the largest publicly traded partnership and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. Enterprise's assets include: 49,100 miles of onshore and offshore pipelines; approximately 190 million barrels of storage capacity for NGLs, refined products and crude oil; and 27 billion cubic feet of natural gas storage capacity. Services include: natural gas transportation, gathering, processing and storage; NGL fractionation, transportation, storage, and import and export terminaling; crude oil and refined products storage, transportation and terminaling; offshore production platform; petrochemical transportation and storage; and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems and in the Gulf of Mexico. For additional information, visit 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 www.enterprisegp.com.
Duncan Energy Partners is a publicly traded partnership that provides midstream energy services, including gathering, transportation, marketing and storage of natural gas, in addition to NGL fractionation, transportation and storage and petrochemical transportation and storage. Duncan Energy Partners owns interests in assets located primarily in Texas and Louisiana, including interests in approximately 9,400 miles of natural gas pipelines with a transportation capacity aggregating approximately 7.9 billion cubic feet ("Bcf") per day; more than 1,600 miles of NGL and petrochemical pipelines featuring access to the world's largest fractionation complex at Mont Belvieu, Texas; two NGL fractionation facilities located in south Texas; approximately 18 million barrels ("MMBbls") of leased NGL storage capacity; 8.5 Bcf of leased natural gas storage capacity; and 34 underground salt dome caverns with more than 100 MMBbls of NGL storage capacity at Mont Belvieu. Duncan Energy Partners is managed by its general partner, DEP Holdings, LLC, which is a wholly-owned subsidiary of Enterprise. Additional information about Duncan Energy Partners is available online at www.deplp.com.
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 or developments or transactions that Enterprise expects, believes or anticipates will or may occur in the future, including anticipated benefits and other aspects of such activities, events, developments or transactions, are forward-looking statements.These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, 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 the reports filed with the Securities and Exchange Commission by Enterprise.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.
SOURCE: Enterprise Products Partners L.P.
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