Enterprise Product Partners plans to convert one of its NGL pipelines to crude oil service.
The pipeline currently transports NGL’s from the Permian Basin to the Texas Gulf Coast and the conversion is expected to be completed in the first half of 2020.
The conversion will provide Enterprise with total crude oil pipeline capacity of more than 650,000 barrels per day from the Permian Basin to Enterprise’s crude oil hub in the Houston area.
Enterprise has three existing NGL pipelines that stretch from the Permian Basin to the Texas Gulf Coast: the Seminole Blue, Seminole Red and Chaparral.
The Shin Oak NGL pipeline, which is expected to be complete in the second quarter of 2019, provides the company with the flexibility to divert NGL volumes from at least one of its existing NGL pipelines onto Shin Oak and repurpose the vacated NGL pipeline to crude oil service. It is currently evaluating which NGL pipeline to repurpose.
A.J Teague, CEO of the general partner of Enterprise, says: ‘We have had strong demand for crude oil transportation, storage and marine terminal services for crude oil production from the Permian Basin.
‘This repurposing of an NGL pipeline to crude oil service is another example of our system flexibility.’