Joint Venture to Extend Ethylene Pipeline Network in South Texas

Enterprise Products Partners announced on Tuesday that under a joint venture with Lavaca Pipeline Co., they are planning to construct a 90 mile Baymark pipeline. The pipeline will carry ethylene and will run from Bayport area southeast of Harris County to Markham, Texas.

The Baymark pipeline will link to Enterprises’ Mont Belvieu complex, a 600 million-pound ethylene storage well. The pipeline will also link to Enterprises' ethylene export terminal at Morgan Point near La Porte, Texas.

As the petrochemical export boom rolls on, U.S. ethane production is projected to increase nearly 60 percent to 2 million barrels a day by 2021, up from 1.26 million barrels a day in 2016. U.S producers are taking advantage of the soaring ethane production unleashed by the shale boom to produce ethylene at a relatively cheaper cost.

"The U.S. petrochemical industry is experiencing unprecedented growth with production of ethylene expected to exceed 100 billion pounds per year by 2025," said A.J. "Jim" Teague, chief executive officer of Enterprise's general partner in a statement. "This growth in the petrochemical sector is creating additional opportunities for Enterprise to grow our midstream petrochemical services. The Baymark Pipeline further extends our petrochemical value chain, providing producing and consuming customers with enhanced access to the largest liquids storage hub in North America at Mont Belvieu, as well as linking them to growing domestic and international markets."

Source:
houstonchronicle

Enterprise Products Partners to Build Massive Billion Dollar Export Terminal

Enterprise Products Partners announced on Tuesday that it is planning to construct a $1 billion to $2 billion oil and export terminal off the Texas coastline to accommodate the world’s largest crude-carrying vessels.

A sea based terminal solves a critical problem for very large crude carriers, or VLCCs, which have recently been heading to Texas instead of the Panama Canal due to recent widening of the canal.

Regardless, Texas ports aren’t able to have ships fill at capacity due to water depth, so Enterprise plans on building pipelines to run about 80 miles from its Houston-area network to an offshore terminal where water is naturally deeper.

It is a project that could take years to be completed. Enterprise expects the state and federal permitting process could take roughly a year before construction can even begin.

“Enterprise is making sure U.S. production doesn’t get gridlocked at the Gulf Coast,” said Colton Bean, an energy analyst with Tudor, Pickering, Holt & Co. in Houston. “The refining system isn’t really expanding much in North America, so exports are your one key relief valve.”

Source:
Houston Chronicle

Apache Corp Signs on as Anchor Customer of 538-Mile NGL Pipeline

Apache Corp said it will be an anchor customer of Enterprise Products Partners' 658-mile natural gas liquids pipeline in Texas, which will serve as a long-term outlet for the producer's large volume of NGL it plans to produce in West Texas.

Enterprise's Shin Oak NGL pipeline will run from Reeves County, Texas to the pipeline company's storage hub east of Houston in Mont Belvieu. Pipeline construction is expected to be complete in mid 2019.

Apache Corp also signed on as a major customer of the planned EPIC Crude Oil pipeline that will run from Apache's Alpine High development to Corpus Christi.

Apache will move more than 200,000 barrels of NGLs per day on the Shin Oak, which will have a starting capacity of 550,000 barrels per day.

Source:
Fuel Fix

Enterprise Products Announces Two Pipeline Expansion Projects

Enterprise Products Partners on Thursday announced two pipeline expansions that will bring natural gas liquids from Colorado to a storage facility in Texas.

Enterprise Products' 435-mile Front Range pipeline expansion will move liquids from northeastern Colorado to Skellytown in North Texas and expand the original pipeline by an additional 100,000 barrels per day.

The second expansion will connect Skellytown to Mont Belvieu with another natural gas liquids pipeline, adding 90,000 barrels per day to a line that will stretch 583 miles.

Both expansions are expected to be in service by middle of 2019.

Together, both expansion projects will make up a natural gas liquids network that will stretch from Colorado to the Gulf Coast.

Source:
Fuel Fix

Enterprise Products Partners Finishes 416-Mile Oil Pipeline Expansion

Houston-based Enterprise Products Partners finished the 416-mile crude oil Midland-to-Sealy, Texas pipeline that is designed to move crude out of the Permian Basin.

The pipeline has a capacity of 540,000 barrels per day and connects in Sealy to another Enterprise pipeline that will bring oil to Enterprise's terminal in southeast Houston.

Enterprise Products predicts the oil production in the Permian will grow by 60 percent of the current production in the next four years, to a large 5 million barrels per day.

The Midland-to-Sealy pipeline is expected to be fully operational in May, according to Enterprise.

Source:
Houston Chronicle

Enterprise Products Partners Talks of Expanding Capacity of its Midland-to-Sealy Crude Pipeline

Enterprise Products Partners said on Wednesday that plans are underway to potentially expand capacity on its Midland-to-Sealy crude oil pipeline by more than 20 percent as a way to transport even more oil from the booming Permian Basin.

Flows on the pipeline averaged 330,000 barrels per day when it came online in November and are expected to hit 450,000 barrels per day as soon as April when the pipeline is fully operational.

The company said studies are being done to measure exactly how much the pipeline capacity can be increased. Currently the company has an increased estimate of 540,000 to 550,000 barrels per day.

Enterprise's announcement to potentially increase capacity on its Midland-to-Sealy pipeline comes as ExxonMobil and other players map out growth for Permian operations, which would demand more transport to move the crude to refining and export facilities near the Gulf Coast.

Enterprise is also building an ethylene pipeline from Mont Belvieu to Bayport, Texas and expects the project to be in service in 2020.

Source:
Reuters

Enterprise Products Partners to Expand NGL Facilities in Midst of Permian Boom

Enterprise Products Partners announced it is further expanding its natural gas liquids facilities in the Houston area and West Texas to take advantage of the boom that forecasts the potential doubling of natural gas and NGL supply in the Permian within the next five years.

Enterprise will expand its butane refining capabilities at its Mont Belvieu complex and continue constructing its new NGL processing plant in Orla.

Enterprise plans to add 300 million cubic feet per day of capacity at its cryogenic natural gas processing facility near Orla as well as add 30,000 barrels per day of processing capacity to its butane isomerization facilities in Mont Belvieu.

Enterprise is also in the middle of constructing its 571-mile Shin Oak pipeline to transport more NGLs from West Texas to Mont Belvieu.

Source:
Houston Chronicle

Enterprise Products Partners to Convert NGL Pipeline in Permian Basin to Crude Oil Service

Enterprise Products Partners is converting one of its natural gas liquids pipelines in the Permian Basin to crude oil service, bringing Enterprise's total crude oil pipeline capacity to more than 650,000 barrels per day from the Permian Basin to its crude oil hub in the Houston area.

The conversion is expected to be complete in the first half of 2020.

The conversion is the company's response to a "strong demand for crude oil transportation, storage, and marine terminal services for crude oil production from the Permian Basin," said CEO of Enterprise Jim Teague.

Enterprise is constructing its Shin Oak NGL pipeline that will take NGL volumes from one of the company's current NGL pipelines in the Permian Basin so that it can be used for crude transportation. Enterprise is currently evaluating which of its three current NGL pipelines in the area to repurpose.

Source:
Business Wire

Colonial Pipeline, Enterprise Products Partners Teaming Up for Fuel Exports from Beaumont Terminal

Colonial Pipeline and Enterprise Products Partners are teaming up to boost exports from the Beaumont refined oil products terminal in Texas to rival the Houston Ship Channel.

Colonial Pipeline is offering marine logistic services and access to as much as 2 million barrels of new storage at Enterprise's facility in Beaumont. Colonial's shippers will be able to move fuel from 13 Gulf Coast refineries to the Beaumont terminal.

The Colonial Pipeline transports more than 3 million barrels per day of gasoline, diesel, and other fuel from the Gulf Coast to the northeast, making it the largest refined products system in the U.S.

International demand for refined products has been on the rise, causing U.S. exports to surge.

Source:
Reuters

Estimated 20,000 Pounds of Butane Emissions Released Friday after Fire at Enterprise Storage Site

A major fire that broke out Friday night at an industrial plant owned by Enterprise Products Partners in Mont Belvieu has been put out, according to authorities.

The fire was reported Friday evening by a person working at the ExxoMobil building in Baytown, Texas, about seven miles from the location of the fire.

As a result of the fire, an estimated 20,000 pounds of butane emissions were released from the underground storage site.

It is unclear what caused the fire, but no injuries were reported as a result, according to Enterprise.

The fire lasted for more than three hours on Friday night and also caused smaller emissions releases of carbon monoxide and nitrogen oxide, according to a filing by Enterprise.

The company also noted that no operations were impacted by the fire.

Source:
Fuel Fix

Enterprise Products Partners Announces Additional Contracts for its Midland to ECHO Pipeline System

Enterprise Products Partners on Wednesday announced additional long-term contracts to provide transportation services on the Midland to ECHO crude oil pipeline system.

The additional agreements brings capacity on the Midland to Sealy section of the pipeline to 335,000 barrels of crude per day, which is approximately 83 percent of the segment's ultimate committed capacity of 405,000 barrels per day.

The Midland to Sealy pipeline is expected to begin limited commercial activities during the forth quarter of 2017 and full service by the second quarter of 2018.

"We are very pleased to announce these additional commitments," said A.J. Teague, CEO of the general partner of Enterprise.

Source:
Enterprise Products Partners

Enterprise Products Partners to Build 571-Mile NatGas Pipeline in Permian Basin

Enterprise Products Partners said on Monday it plans to build a 571-mile pipeline to transport natural gas liquids from the Permian Basin to the Houston area.

In its statement, Enterprise Products Partners said the pipeline would begin at its Hobbs NGL fractionation and storage facility in Gaines County, Texas and end at its NGL fractionation and storage complex in Mont Belvieu, Texas.

“The Permian Basin is currently the hottest play in North America and is expected to continue its strong growth for years to come," said Enterprise Products Partners CEO Jim Teague in a statement.

"The Shin Oak pipeline project is part of Enterprise’s larger plans in the Permian to leverage our integrated midstream assets to link supplies of cost-advantaged U.S. hydrocarbons to the largest domestic and global NGL markets," Teague added in the statement.

The proposed Shin Oak NGL pipeline will have an initial capacity of 250,000 barrels per day and expand to a potential 600,000 barrels per day. The project is expected to be in service by the second quarter of 2019.

Source:
Enterprise Products Partners
Houston Chronicle

Enterprise Products Partners to Acquire Azure Midstream Assets for $189 Million

Enterprise Products Partners on Wednesday won a bid to buy the business and assets of bankrupt Azure Midstream Partners and all of its operating subsidiaries in East Texas and North Louisiana for $189 million.

The acquisition includes over 960 miles of natural gas gathering pipelines, three natural gas processing facilities, and two natural gas liquids pipelines that can each carry 10,000 barrels per day.

Enterprise said it plans to close the deal as soon as possible once regulatory approvals and closing conditions have occurred, which could be as early as next month.

“These assets are very complementary to our East Texas NGL, Texas Intrastate natural gas pipeline, and our Haynesville gathering and Acadian natural gas pipeline systems," said William Ordemann, executive VP of Enterprise's general partner.

Source:
Enterprise Products Partners
Fuel Fix

Major Texas Oil Pipeline Remains Shut After Rupture

A 500-mile oil pipeline owned by Enterprise Products Partners and Enbridge Inc. was punctured by a construction worker during road work on Monday, gushing oil several stories high and onto a highway northeast of Dallas.

The Seaway S-1 pipeline has been shut down and remains shut as of Tuesday while crews work on cleanup procedures. A section of State Highway 121 near Trenton also remains closed to prevent accidents on the roadway.

Pipeline representatives were not immediately able to indicate how much oil was spilled.

A contractor working for the Texas Department of Transportation accidentally punctured the high-pressure pipeline while working on the road. No injury or fire as a result of the incident was reported.

The pipeline is operated by Seaway Crude Pipeline Company, which is a joint venture between Enterprise and Enbridge. Seaway announced in a statement Monday that the company is developing "a plan to resume operations as quickly and safely as possible."

Source:
The Wall Street Journal

Williams Cos. Names Former Enterprise Products Partners CEO to its Board

Williams Cos. on Tuesday named the former CEO of Enterprise Products Partners to its board just three months after Enterprise Products Partners withdrew its offer to purchase Williams Cos and combine the two companies.

Along with naming the retired Enterprise CEO Michael Creel, Williams brought on attorney Charles “Casey” Cogut to its board.

Enterprise back in September withdrew an offer to purchase Williams after claiming the company showed a “lack of engagement” during the process.

The new board assignment come as Williams is still trying to stabilize itself after its fall-out with Energy Transfer Partners who had planned to purchase Williams over the summer but backed out due to buyer’s remorse.

Midstream consolidation has not stopped with Williams but is a larger trend as Enbridge agreed to purchase Spectra Energy for $28 billion and TransCanada recently purchased Columbia Pipeline Group for more than $10 billion.

Source:
Fuel Fix

No Injuries Occurred From Fire After Gas Pipeline Rupture, Pipeline Segment Isolated

No injuries occurred after a fire erupted from a ruptured gas pipeline north of Kansas City, Missouri, according to authorities.

A pipeline owned by Enterprise Products Partners that carries ethane and propane ruptured, causing a fire to erupt on Tuesday evening in Platte County, Missouri. The fire was later put out.

Enterprise Products Partners, who owns the pipeline’s operator Mid-America Pipeline Company said the affected segment of the pipeline has been isolated and that an investigation of the cause of rupture is currently ongoing.

Source:
PennEnergy

Seaway Pipeline in Cushing Temporarily Shut After Oil Spill

Seaway Pipeline Map (  Seaway Pipeline  )

Seaway Pipeline Map (Seaway Pipeline)

Pipeline developers temporarily shut down service on an oil pipeline system in Cushing, Oklahoma after an oil spill occurred on the line late Sunday night.

An older section of the Seaway pipeline, a joint venture between Enterprise Products Partners and Enbridge that delivers oil to the Texas Gulf Coast, was shut down as a precaution after officials detected a leak of an undisclosed amount of oil that did not cause any injuries, fires, and was not a threat to the public.

According to Seaway Crude Pipeline Co., the spill occurred in an industrial area of Cushing near Linwood Avenue and Texaco Drive. The spill occurred on Enbridge property only and has been contained in a retention pond at Enbridge’s facility.

Seaway said in a news release that the company is continuing to make efficient progress in cleaning up the spill, using vacuum trucks to recover the crude.

The amount of oil spilled will not be disclosed until cleanup efforts are complete, according Enterprise Products Partners.

Source:
Yahoo Finance
The Oklahoman

Enterprise No Longer Interested in Williams Takeover

Enterprise Products Partners announced Thursday it is no longer interested in buying Williams Companies after mentioning that Williams showed a “lack of engagement” in the proposed deal.

This decision shortly follows another altercation Williams is in involving a proxy fight with its fourth-largest investor who wants to clean the entire Williams board with new members following the failed merger with Energy Transfer Equity. Williams appointed on August 29 three new board members, hoping to dissuade shareholder support for a new slate of members.

According to Bloomberg, Williams responded as surprised by Enterprise’s decision to no longer pursue the buyout and said it remains “open to considering any potential strategic alternative.”

Enterprise’s announcement shortly follows Enbridge Energy’s announcement to buy Spectra Energy in an all-stock deal for $28 billion.

“I do think that consolidation will continue to be a trend for midstream companies,” said analyst with Moringstar Inc. Mark Hanson.

The Enbridge and Spectra deal brings pressure to other big midstream companies like Kinder Morgan and Enterprise to follow suit and consolidate as a strategy to save money following a downturn in oil prices.

According to Rebecca Followill, head of research at U.S. Capital Advisors, Enbridge’s takeover of Spectra may start a “supermajor” era for the pipeline industry, setting off a trend of consolidation that could increase throughout 2016.

Source:
Bloomberg

Williams Declines Enterprise Bid to Create Energy Pipeline Giant

Enterprise Products Partners recently made an offer to buy Williams Companies but was rejected in its attempt to create an $80 billion energy giant, the Financial Times reported Thursday.

The proposed buyout comes just weeks after the failed merger of Williams and Energy Transfer Partners. Energy Transfer backed out of the planned $33 billion sale for Williams claiming its uncertainty about whether the transaction would be tax free, a mandatory condition to the transaction.

The failed buyout with Energy Transfer caused an upheaval in Williams’ boardroom as six of the company’s 13 directors resigned when Williams’ CEO, Alan Armstrong, would not step down.

The Financial Times reports that a deal with Williams Companies would allow Enterprise Products to cut costs and reshape its pipeline portfolio in the current oil and gas industry downturn.

The structure of the offer made by Enterprise Products is currently unknown, but sources report that Enterprise Products is still interested in the deal and may make another offer.

Source:
Financial Times

Pascagoula Natural Gas Plant May Restart by Year's End

A Pascagoula natural gas processing plant that was severely damaged in an explosion back in June could restart operations by the end of this year, stated CEO James Teague of Enterprise Products Partners to investors during a conference call.

“The investigation of the Chemical Safety Board is still underway and we are cooperating. At this time, our best estimate is the plant will return to operation in the fourth quarter,” said Teague.

Enterprise set aside $7 million for damage repair, but the vice president of investor relations Randy Burkhalter said that amount may increase as they are still developing what the cost will be to get the facility back up and running.

The Pascagoula processing plant extracts liquids from natural gas, sending the gas to users and the liquids to plants that make propane and butane. Due to the plant’s temporary shutdown, some oil and gas platforms in the Gulf of Mexico have limited production. Some natural gas is being diverted from the Destin Pipeline, which feeds the Pascagoula plant, to other connected pipelines. Gas is then being piped ashore for processing in Louisiana.

Investigations about the explosion that sent flames into the air for hours are still ongoing.

Enterprise now wholly owns the plant after purchasing BP’s 60 percent share earlier this year.

Source:
PennEnergy