Enterprise build new oil, condensate pipeline from Midland Houston

Enterprise to build new oil, condensate pipeline from Midland to Houston

6:52 AM, 1st May 2015
Enterprise to build new oil, condensate pipeline from Midland to Houston

HOUSTON, US: Oil and gas pipeline company Enterprise Products Partners LP said it will develop a new 416-mile, 24-inch diameter pipeline to transport crude oil and condensate from the company’s Midland, Texas terminal to its Sealy storage facility west of Houston. The new pipeline will provide up to 540,000 barrels per day (bpd) of take-away capacity for growing volumes of crude oil and condensate from the Permian basin. Service is expected to begin in the second quarter of 2017.

From Sealy, the new pipeline would link to Enterprise’s ECHO terminal through an interconnect with the Rancho II pipeline, which is scheduled to be in service in July 2015. Through ECHO, customers will have direct access to every refinery in Houston, Texas City, Beaumont and Port Arthur, as well as Enterprise’s dock facilities, it said.

Enterprise is in the process of adding incremental storage capacity to support the new pipeline and the existing West Texas gathering system.

“In addition to facilitating crude oil and condensate production from one of our most important domestic basins, the Midland-to-Sealy pipeline will provide customers with adequate supply out of the Permian basin and unsurpassed market access to the vast Gulf Coast refining complex, as well as dock access necessary for growing export opportunities,” said Michael Creel, chief executive officer, Enterprise’s general partner.

Enterprise now has approximately $7.5 billion of capital growth projects under construction, several of which will benefit customers on the new Midland-to-Sealy pipeline. Specifically, the 36-inch diameter Rancho II pipeline, which extends 88 miles from Sealy, to the ECHO terminal, will have over one million bpd of capacity for crude oil and condensate from the Permian basin and the Eagle Ford shale.

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