HOUSTON--(BUSINESS WIRE)--Enterprise Products Partners L.P. (NYSE:EPD) today announced that shippers who executed 10-year, firm transportation agreements in May 2011 on the partnership’s Mid-America Pipeline (“MAPL”) Rocky Mountain expansion project have exercised options that increase their total commitments by approximately 115 percent to 82,500 barrels per day (“BPD”). During the original four-week open season that ended April 29, 2011, shippers committed to an initial capacity of 38,500 BPD. The committed shipper transportation rate to Mont Belvieu, which is subject to annual escalation, is 15.1 cents per gallon.
The project, which received Federal Energy Regulatory Commission approval in August 2011, involves looping the existing system with 263 miles of 16-inch diameter pipeline, as well as pump station modifications. The additional capacity is designed to accommodate growing natural gas and natural gas liquids (“NGL”) production from major basins in Utah, Colorado, Wyoming and New Mexico. Several new natural gas processing plants are being constructed in the Uinta, Piceance, and Greater Green River basins that will fill the expansion, which is expected to begin service in the third quarter of 2014.
“We are pleased with the strong demand for this expansion of the Mid-America Pipeline system,” said A.J. “Jim” Teague, executive vice president and chief operating officer of Enterprise’s general partner. “The expansion enables producers to maximize the value of their Rocky Mountain NGL production by providing them access to the largest domestic NGL market located on the Texas Gulf Coast. Additionally, the Rocky Mountain expansion project complements our Texas Express Pipeline joint venture, and enhances value chain growth opportunities for Enterprise’s integrated processing, pipeline, storage, fractionation and distribution network.”
Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. The partnership’s assets include approximately: 50,000 miles of onshore and offshore pipelines; 192 million barrels of storage capacity for NGLs, refined products and crude oil; and 8 billion cubic feet of natural gas storage capacity. Services include: natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage, and import and export terminaling; offshore production platform services; crude oil and refined products transportation, storage and services; 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.enterpriseproducts.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, 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. Although Enterprise believes that the forward-looking statements included herein are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties, 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 risks and uncertainties included in the reports filed with the Securities and Exchange Commission by Enterprise. While Enterprise makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ materially from those expected. 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.