Enterprise to expand Rockies NGL capacity of Mid-America Pipeline
Houston (Platts)--5May2011/739 pm EDT/2339 GMT
Enterprise Products Partners plans to expand the natural gas liquids
capacity of the Rocky Mountain segment of its Mid-America Pipeline by 85,000
b/d, it said Thursday.
The additional capacity is designed to accommodate growing natural gas
and NGL production from basins in Utah, Colorado, Wyoming and New Mexico, the
Several companies are ramping up drilling activities in liquids-rich
shale plays in the region, such as the Niobrara and Uinta.
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Shippers have signed up for an initial 38,500 b/d in 10-year, firm,
ship-or-pay transportation agreements, with options to up their takeaway to
85,000 b/d, Enterprise said.
The project will include looping the existing grid with as much as 290
miles of 16-inch-diameter diameter pipelins and pump station modifications.
It is expected to go into service in the third quarter of 2014.
Several new natural gas processing plants are being constructed in the
Uinta, Piceance, and Greater Green River basins that should fill the
expansion by 2014.
"We have received strong demand for this expansion of the Mid-America
system," said Jim Teague, executive vice president and chief operating
officer of Enterprise's general partner.
"We believe this expansion will enable producers to maximize the value of
their Rocky Mountain NGL production by providing them access through our
integrated system to the largest domestic NGL market, located on the Texas
Gulf Coast," Teague said.
The Rocky Mountain portion of the Mid-America system extends more than
3,000 miles and transports NGLs from the Overthrust and San Juan basin areas
to Enterprise's Hobbs fractionator in Gaines County, Texas.
An interconnect to Enterprise's 1,300-mile Seminole Pipeline at Hobbs
allows shippers to reach its fractionation facility in Mont Belvieu, Texas.
Enterprise recently announced that is in the process of increasing its
fractionation capabilities at Mont Belvieu.
--Samantha Santa Maria, Samantha_santa_maria@platts.com