Enterprise Products has made a 10 year agreement with producers in Eagle Ford Shale in South Texas, US, to supply crude oil transportation and marketing services.
The transportation will include moving 50,000 barrels a day along the new 140 mile, 24 inch crude pipeline being built by Enterprise.
The transaction will allow shippers to access storage hubs and refining centres, as service along the pipeline, which has a capacity of 350,000 barrels a day, will begin in Q2 2012.
A.J. Teague, Enterprise executive vice president and chief operating officer, says: ‘More than half of the available capacity on our new pipeline is already under commitment for the next 10 years as producers have clearly come to recognise the value our integrated midstream network provides them in maximising the value of their growing crude oil output. The demand for our services remains brisk and we are currently in discussions with other producers for additional long-term commitments.’
Enterprise’s crude oil pipeline system is also constructing on a 150-acre tract in southeast Houston. Scheduled to begin operations in mid-2012, the Crude Houston Terminal will feature access to major Texas Gulf Coast refiners in Texas City.