Enterprise to Provide Midstream Services to EOG

Enterprise Products Partners will provide midstream energy services for EOG’s growing crude oil and associated liquids-rich natural gas production in Eagle Ford Shale in South Texas, US.

As part of its long-term agreements, Enterprise will construct a 140 mile pipeline from north-west Karnes County to transport EOG’s crude oil production from Eagle Ford Shale.

The pipeline will extend to its existing crude oil system in Austin County and connect to the partnership’s Sealy Station.

The pipeline, which has a capacity of 350,000bpd, will provide EOG the flexibility to access the Houston refinery market or the Enterprise-operated Seaway Pipeline system for a direct link to Oklahoma under a ten-year, firm transportation agreement.

Enterprise will build central delivery points for receiving crude oil and gathering pipelines at multiple locations along the crude oil pipeline route.

The pipeline project is expected to be completed in the first quarter of 2012.

Enterprise will also provide firm natural gas transportation and processing, as well as NGL transportation and fractionation services to EOG, anchored by seven-year contracts.

For these services Enterprise will construct 52 miles of additional pipeline laterals to complement its previously announced Eagle Ford rich natural gas mainline project.

In addition, the firm will also provide EOG with natural gas processing services at the partnership’s planned cryogenic gas processing facility with an initial capacity of 600 million cubic feet per day, expected to be in service in mid-2012.