Enterprise, Enbridge and Anadarko Moving Forward With Development of the Texas Express Pipeline

06.03.2012  |  Business Wire

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.?

The joint venture also includes two new NGL gathering systems. The first
will connect TEP 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 located in
Central Texas. Wider access to multiple production areas, in addition to
a competitive transportation fee structure, makes this an attractive
option for producers and natural gas processors. Enterprise will
construct and operate the pipeline, while Enbridge will construct and
operate the new gathering systems.

'Enbridge Energy Partners is pleased to be working with Enterprise and
Anadarko on the Texas Express Pipeline, which will secure long-term
access to the premium NGL market at Mont Belvieu and effectively enhance
the netback to our customers,? said Mark Maki, president of Enbridge
Energy Partners. 'Enbridge expects that this project will be accretive
to our unit holders and it exemplifies EEP′s growth strategy to further
integrate our natural gas gathering and processing systems with
downstream NGL infrastructure.?

Enterprise representatives are currently working with residents,
landowners and community leaders along the proposed route, providing
information about the project, conducting surveys and negotiating
right-of-way agreements. The pipeline and related gathering systems are
expected to begin service in the second quarter of 2013, subject to
regulatory approvals.

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: 50,600 miles of onshore and offshore pipelines; 190
million barrels of storage capacity for NGLs, petrochemical, refined
products and crude oil; and 14 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
terminaling; 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.

Enbridge Energy Partners, L.P. owns and operates a diversified portfolio
of crude oil and natural gas transportation systems in the United
States. Its principal crude oil system is the largest transporter of
growing oil production from western Canada. The system's deliveries to
refining centers and connected carriers in the United States account for
approximately 13 percent of total U.S. oil imports; while deliveries to
Ontario, Canada satisfy approximately 70 percent of refinery demand in
that region. EEP's natural gas gathering, treating, processing and
transmission assets, which are principally located onshore in the active
U.S. Mid-Continent and Gulf Coast area, deliver approximately 2.5
billion cubic feet of natural gas daily. Enbridge Energy Management,
L.L.C. (NYSE: EEQ) manages the business and affairs of EEP and its sole
asset is an approximate 13 percent interest in the EEP. Enbridge Energy
Company, Inc., an indirect wholly owned subsidiary of Enbridge Inc. of
Calgary, Alberta, (NYSE: ENB) (TSX: ENB) is the general partner and
holds an approximate 23 percent interest in EEP. Additional information
is available at www.enbridgeus.com.

Anadarko Petroleum Corporation is one of the world′s largest independent
oil and natural gas exploration and production companies with 2.54
billion barrels-equivalent of proved reserves at year-end 2011. The
company has significant producing properties in southwest and West
Texas, including premier positions in the Eagleford Shale, Ozona area
and Permian Basin. The company also is among the largest operators in
the Rocky Mountain region, and combined with its master limited
partnership, Western Gas Partners, LP (NYSE: WES), has extensive
midstream infrastructure throughout its U.S. onshore operating areas.
Anadarko′s mission is to deliver a competitive and sustainable rate of
return to shareholders by exploring for, acquiring and developing oil
and natural gas resources vital to the world′s health and welfare. For
more information about Anadarko, please visit www.anadarko.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, Enbridge and
Anadarko expect, believe or anticipate 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, Enbridge and
Anadarko.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, Enbridge and Anadarko do not
intend to update or revise their forward-looking statements, whether as
a result of new information, future events or otherwise.