Enbridge and Anadarko get 15-year commitments from shippers7 March 2012 by Abhishek Dutta
Enterprise Products Partners (EPP) and its joint venture partners Enbridge Energy Partners, and Anadarko Petroleum Corporation have announced that shippers have entered into long-term contracts for capacity on the Texas Express Pipeline (TEP).
The shippers have tendered 15-year, ship-or-pay transportation agreements containing volume commitments that total 232,000 barrels per day.
The TEP mainline will extend about 580 miles to Enterprise's natural gas liquids (NGL) fractionation and storage hub at Mont Belvieu, Texas near the Gulf Coast and will provide access to other third-party facilities in the area.
The 20-inch diameter pipeline will transport natural gas liquids for producers in West Texas, the Rocky Mountains, southern Oklahoma and the Mid-continent area, linking them with the NGL market along the Gulf Coast.
Production from the Rockies, Permian Basin and Mid-continent will be delivered into TEP through Enterprise's existing Mid-America Pipeline System (MAPL) moving north through Oklahoma towards Conway, Kansas and south into the Permian Basin.
The joint venture will also build two new NGL gathering systems, one of which will connect TEP to natural gas processing plants in the Anadarko/Granite Wash production area located in the Texas Panhandle and Western Oklahoma.
The other NGL gathering system will connect the new pipeline to Barnett Shale natural gas processing plants located in Central Texas.
Enterprise will build and operate the pipeline, while Enbridge will develop and operate the new gathering systems.