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Apache dedicates Alpine High NGLs to Enterprise

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World Pipelines,

Enterprise Products Partners L.P. and Apache Corporation today announced they have executed a long-term agreement, with Apache committing 100% of its Alpine High natural gas liquids (NGLs) to Enterprise.

Apache has 336 000 acres in its Alpine High discovery in the Delaware Basin. Enterprise has committed to accept a minimum of 205 000 bpd of NGLs from Apache.

Enterprise is constructing the 658 mile Shin Oak pipeline from Reeves County to Enterprise’s NGL fractionation and storage complex in Mont Belvieu, Texas. The pipeline is expected to have an initial capacity of 550 000 bpd and is scheduled to be completed in 2Q19. Apache has an option for a 33% equity stake in the Shin Oak pipeline, which is exercisable after the in-service date.

“We are excited to announce our long-term agreements with Apache to support their development of the prolific Alpine High region,” said A.J. “Jim” Teague, Chief Executive Officer of Enterprise’s general partner. “This is another example of Enterprise working with a premier producer in one of the most attractive developments in the US Shin Oak complements Enterprise’s existing foundation of midstream assets and is part of our comprehensive solution for providing flow assurance and market choices from multiple basins, in addition to facilitating continued production growth in an area, which is expected to double over the next four years.”

“Alpine High is an enormous hydrocarbon resource that encompasses rich gas, dry gas and oil-bearing horizons. This agreement provides an efficient long-term outlet for the tremendous volume of NGLs that Apache plans to produce from the rich gas window of the play.

“Today’s announcement with Enterprise is another step in supporting our full-field development programme and ensuring access to attractive markets for our products,” said Brian Feed, Apache’s Senior Vice President, Midstream and Marketing.

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US pipeline news Natural gas pipeline news