Enterprise Closes Land Deal
Official Press Release
HOUSTON--(BUSINESS WIRE)-- Enterprise Products Partners L.P. (NYSE:EPD) today announced plans to construct a crude oil storage facility and associated pipelines to provide refiners in the Houston area with access to growing production from the Eagle Ford Shale play in South Texas. A 150-acre tract in an industrial area of southeast Houston has been purchased as the site for the new Enterprise Crude Houston terminal.
Crude oil would be delivered to the Enterprise Crude Houston facility through the partnership’s Rancho Pipeline, located approximately three miles northwest of the new terminal, and two, 24-inch diameter pipelines Enterprise plans to construct. Strategically located close to two large-diameter crude oil distribution pipelines, the Enterprise Crude Houston terminal would provide access to the major refiners in Texas City, as well as other installations in Pasadena/Deer Park, Baytown and along the Houston Ship Channel via the Seaway Pipeline. The new crude oil storage facility and related infrastructure is scheduled to begin service in mid-2012.
“This project significantly enhances the value of Enterprise’s integrated midstream network in the Eagle Ford Shale by linking our recently announced 140-mile crude oil pipeline with the Houston-area refining complex, which features more than two million barrels per day of demand,” said A.J. “Jim” Teague, Enterprise executive vice president and chief operating officer. “By offering access to the largest concentration of refineries in the world and the storage and trading hub at Cushing, Oklahoma, Enterprise will be able provide Eagle Ford Shale producers with flexible options for maximizing the value of their production.”
Mark Hurley, senior vice president, Crude Oil and Offshore for Enterprise added, “The terminal and associated pipelines will be especially important to refiners that are depending on reliable, local supplies to support expansion projects. Domestic crude oil from the Eagle Ford Shale also reduces the country’s dependence on foreign sources for producing gasoline and other refined products.”
Initial storage capacity at the Crude Houston terminal will be dedicated to the operation of the new pipelines. However, the partnership envisions further expansion of the facility to accommodate production volumes from offshore and Canadian sources in addition to the Eagle Ford Shale.
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 200 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.