Enterprise Products Partners LP, Enbridge Energy Partners and Anadarko Petroleum Corp said on Tuesday their joint venture Texas Express NGL pipeline had 15-year shipper commitments to carry 232,000 barrels of natural gas liquids per day from quickly growing production regions to the NGL hub of Mont Belvieu, Texas for processing.
The new Texas Express pipeline will run 580 miles (930 km) from Skellytown in west Texas to Enterprise's natural gas liquid fractionation plant in Mont Belvieu, near the Gulf Coast.
It will carry natural gas liquids from producers in west Texas, the Rocky Mountains, southern Oklahoma and the mid-Continent region through Enterprise's existing Mid-American pipeline.
The move "addresses the need for flow assurance and market choices for producers, as well as reliable supplies of price-advantaged, natural gas-derived feedstocks to meet the increasing demand of petrochemical operators", said Michael A. Creel, president and CEO of Enterprise's general partner.
The joint venture also includes two new NGL gathering systems.
The first will connect Texas Express to natural gas processing plants in the Anadarko/Granite Wash production area located in the Texas panhandle and western Oklahoma.
The second NGL gathering system will connect the new pipeline to Barnett Shale natural gas processing plants in central Texas.
Houston-based Enterprise will construct and operate the pipeline, while Enbridge, a unit of Canadian Enbridge Corp , will construct and operate the new gathering systems.
Resource: Reuters
