Enterprise Products To Extend Eagle Ford Shale Oil Pipeline

May 2011, Vol. 238 No. 5

Enterprise Products Partners L.P. plans an 80-mile extension of its 350,000- bpd Eagle Ford Shale crude oil pipeline in southwest Texas enabling it to serve growing production areas in the southwestern portion of the play.

The Phase II project would originate in Wilson County at the terminus of the partnership’s previously announced 140-mile Phase I segment, and extend to a site near Gardendale in La Salle County where a central delivery point is planned for construction that will feature 500,000 bbls of storage. Phase I is on schedule to begin service by mid 2012 with Phase II set to start operations in early 2013. When completed, the 220-mile crude oil pipeline system will provide Eagle Ford Shale producers with access to the Texas Gulf Coast refining complex through Enterprise’s integrated midstream network.

The Phase II extension, designed with a capacity of 200,000 bpd, is anchored by a 10-year agreement with Chesapeake Energy Marketing, Inc. As part of the deal Chesapeake has committed to 100,000 bpd of firm crude oil transportation capacity.

Phase II will provide shippers with access to Enterprise’s Sealy delivery point which interconnects with the partnership’s Rancho Pipeline and feeds into Enterprise’s new ECHO crude oil storage terminal being built along the Houston Ship Channel. The pipeline options available to shippers via the terminal would provide access to more than 2 MMbpd of refining capacity in the Houston area.