HOUSTON--(BUSINESS WIRE)--Enterprise Products Partners L.P. (NYSE: EPD) today announced the start of a binding open commitment period for capacity on a proposed pipeline designed to transport ethane from the Marcellus and Utica shale regions in Pennsylvania, West Virginia and Ohio to the U.S. Gulf Coast. The partnership has already met with interested shippers willing to execute long-term contracts to support the project, and expects sufficient market support during the open commitment period. The open commitment period runs from 8 a.m. CDT Tuesday October 11, 2011 through 5 p.m. CST Thursday, November 10, 2011.
The approximately 1,230-mile pipeline would have an initial capacity of 125,000 barrels per day (BPD), and can be quickly expanded to meet increased shipper demand. The pipeline would deliver ethane to Enterprise’s natural gas liquids storage complex at Mont Belvieu, Texas. Through connections at Mont Belvieu, ethane production from the Marcellus and Utica shales would ultimately have direct or indirect access to every ethylene plant in the U.S. The pipeline would be expected to begin commercial operations in the first quarter of 2014.
“For more than a year, we have been working with producers in the Marcellus Shale play, and more recently the Utica Shale, to address the growing logistical needs to transport their ethane production and facilitate natural gas production from this liquids-rich region,” said A.J. “Jim” Teague, executive vice president and chief operating officer of Enterprise’s general partner. “We have also built facilities to serve the petrochemical industry on the Gulf Coast as it continues to expand its use of price-advantaged domestic ethane over more expensive imported crude oil derivatives. By providing access to the Gulf Coast petrochemical market, our ethane pipeline offers a timely, cost-effective and expandable solution for meeting the country’s long-term needs from both an energy supply and demand perspective.”
The project would utilize a combination of new and existing infrastructure. The northern portion of the proposed system involves construction of a pipeline that would originate in Washington County, Pennsylvania and extend west, then southwest, following existing pipeline corridors in order to minimize the footprint of the project. At Cape Girardeau, Missouri the pipeline would interconnect with Enterprise’s existing 16-inch diameter TE Products Pipeline, which would be reversed to accommodate southbound delivery of ethane to the U.S. Gulf Coast. At the terminus of the existing Enterprise TE Products Pipeline in Beaumont, Texas, the partnership would construct a 55-mile pipeline to the Mont Belvieu facility.
Additional details, including a Notice of Open Commitment and a Transportation Services Agreement form, will be distributed to shippers. Requests for additional information may be directed to Russ Kovin at rkovin@eprod.com or (713) 381-7925.
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. EPD’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 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 about Enterprise please 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. 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.