Enterprise Products Partners L.P. (NYSE: EPD), Enbridge Energy Partners, L.P., (NYSE: EEP) and Anadarko Petroleum Corporation (NYSE: APC) today announced that shippers have executed long-term contracts for capacity on the Texas Express Pipeline (“TEP”) being developed by the joint venture. The shippers, which include unaffiliated shippers, have tendered 15-year, ship-or-pay transportation agreements containing volume commitments that total 232,000 barrels per day (“BPD”). The contracts also include an option provision allowing shippers to increase their volume commitment.
Originating near Skellytown in Carson County, Texas, the 20-inch diameter TEP mainline will extend approximately 580 miles to Enterprise’s natural gas liquids (“NGL”) fractionation and storage complex at Mont Belvieu, Texas, and will provide access to other third-party facilities in the area. The pipeline will provide much-needed takeaway capacity for producers in West Texas, the Rocky Mountains, southern Oklahoma and the Mid-continent area, giving them access to the largest NGL market along the Gulf Coast and the opportunity to maximize the value of their NGLs. Production from the Rockies, Permian Basin and Mid-continent will be delivered into TEP through Enterprise’s existing Mid-America Pipeline System (“MAPL”) which extends north through Oklahoma into Conway, Kansas and south into the Permian Basin.
“This joint venture with Enbridge and Anadarko brings together partners with unique and complementary strengths to provide an industry solution that 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 chief executive officer of Enterprise’s general partner. “For Enterprise, this project is a ‘bolt-on’ expansion that enhances the value of our integrated midstream network of assets, including the pipelines that will feed TEP, as well as our fractionators, storage facilities and distribution network at Mont Belvieu, which will be fed by the new pipeline.”
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV