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Enterprise announces new contracts for crude oil pipeline system

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World Pipelines,

Enterprise Products Partners L.P. announced it has executed additional long-term contracts to provide transportation services on the Midland to ECHO crude oil pipeline system. The execution of these additional agreements brings total committed volumes on the Midland to Sealy segment of this system to 335 000 bpd, which represents approximately 83% of the segment’s ultimate committed capacity of 405 000 bpd. Total capacity for the pipeline segment will be 450 000 bpd, which will include 45 000 bpd of “walk-up” capacity.

“We are very pleased to announce these additional commitments,” said A.J. Teague, CEO of the general partner of Enterprise. “Our Midland to ECHO crude oil system is attractive to large producers in the Permian that control and market their own production. Our transportation, storage and distribution system connects Permian producers to dedicated storage facilities, over 4 million bpd per day of refinery demand on the Texas Gulf Coast as well as international markets through Enterprise’s export marine terminals on the Houston Ship Channel and Beaumont. We believe access to waterborne international markets is essential to Permian producers to maximise the value of their light crude oil and condensate production.”

The Midland to Sealy pipeline is expected to begin limited commercial activities during the fourth quarter of 2017. The pipeline is scheduled to be in full service, including the capability to batch four grades of crude oil, with 450 000 bpd of capacity by the second quarter of 2018. Committed volumes ramp up through 2021 with 90% of the total committed volumes scheduled to ramp up by the end of 2019.

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US pipeline news Crude oil pipeline news