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Enterprise, Enbridge and Anadarko to Jointly Develop New NGL Pipeline Linking Key Natural Gas Producing Basins to the Gulf Coast

06.09.2011  |  Business Wire


Enterprise Products Partners L.P. (NYSE:EPD), Enbridge Energy Partners,
L.P., (NYSE:EEP) and Anadarko Petroleum Corporation (NYSE:APC) today
announced an agreement to design and construct a new natural gas liquids
(NGL) pipeline that will originate from Skellytown, Texas in Carson
County and extend approximately 580 miles to NGL fractionation and
storage facilities in Mont Belvieu, Texas. The new Texas Express
Pipeline ('TEP?) will help producers in West and Central Texas, the
Rocky Mountains, Southern Oklahoma and the Mid-continent maximize the
value of their natural gas production by providing additional takeaway
capacity and enhanced access to the Gulf Coast NGL market. Initial
capacity on TEP will be approximately 280,000 barrels per day (BPD),
which can be readily expanded to approximately 400,000 BPD.


In addition, the joint venture will include 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 Central Texas, Barnett Shale processing plants. Volumes
from the Rockies, Permian Basin and Mid-continent regions will be
delivered to the TEP system utilizing Enterprise′s existing Mid-America
Pipeline ('MAPL?) assets between the Conway hub and Enterprise′s Hobbs
NGL fractionation facility in Gaines County, Texas. Enterprise will
construct and serve as the operator of the pipeline, while Enbridge will
build and operate the new gathering systems. The pipeline and gathering
systems are expected to begin service in the second quarter of 2013,
subject to regulatory approvals.


'We are very pleased to partner with Enbridge and Anadarko on this
project, which offers a comprehensive industry solution for addressing
NGL transportation constraints that are currently limiting access to the
largest domestic NGL market located along the Gulf Coast,? said Michael
A. Creel, Enterprise president and chief executive officer. 'The new
pipeline and gathering systems, which are underpinned by long-term
contracts, will also have the capability to provide takeaway capacity
for other producing areas not presently served by the MAPL system,
including Oklahoma′s Granite Wash, the Anadarko-Woodford basin, and the
Barnett Shale. 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. NGLs controlled by
affiliates of Enterprise, Enbridge and Anadarko will solidly anchor the
project.?


'Enbridge is also very pleased to be working with Enterprise and
Anadarko on this critical NGL pipeline,? said Mark Maki, president of
Enbridge Energy Partners, L.P. 'Through our extensive gathering and
processing assets, Enbridge has developed a significant and growing NGL
supply position in Texas and Oklahoma. The Texas Express Pipeline will
provide guaranteed NGL access to the primary U.S. petrochemical market
in Mont Belvieu, ensuring premium NGL netbacks for our customers.
Importantly, the Texas Express pipeline fulfills a key strategic
objective of Enbridge to extend our value chain from gathering and
processing to include NGL transportation, providing Enbridge′s unit
holders with a new source of strong and stable cash flow.?


Anadarko Vice President, Midstream, Danny Rea, said, 'This project will
further enhance our ability to consistently access premium Mont Belvieu
markets and increase the wellhead netbacks for our growing NGL
production from our Rockies and Texas assets, as well as better align
our interests with the project developers through our equity
participation.?


While providing producers with much-needed takeaway capacity, TEP will
also supply petrochemical facilities with a reliable, domestic source of
feedstock. Demand for natural gas-derived feedstocks remains strong,
driven by the wide spread between crude oil and natural gas prices.


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. Enterprise′s assets include
approximately: 50,200 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 more information visit www.enterpriseproducts.com.


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 14 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 25 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 natural gas exploration and
production companies with 2.42 billion barrels-equivalent of proved
reserves as of year end 2010. 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.


Photos/Multimedia ?Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6850416&lang=en

Enterprise

Randy Burkhalter, Investor Relations, (713)
381-6812 or (866) 230-0745

Rick Rainey, Media Relations, (713)
381-3635

or

Enbridge

Douglas Montgomery, Investor
Relations, (866) 337-4636

Terri Larson, Media Relations, (877)
496-8142

or

Anadarko

John Christiansen, Media
Relations, (832) 636-8736



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