Enterprise Products Partners has secured long-term agreements that support a further expansion of the Midland to Echo crude oil pipeline system.
The company will build a pipeline that connects the partnership’s six-million-barrel Midland, Texas storage facility to its Echo terminal through its Eagle Ford system in South Texas.
This pipeline will have an initial capacity of 450,000 barrels per day and can be expanded up to 540,000 barrels per day. Enterprise’s Houston crude oil distribution system includes more than 45 million barrels of storage and four million barrels per day of export capacity from its network of marine terminals and connects to every refinery in the Houston Texas City and Beaumont/Port Arthur area, representing 4.5 million barrels per day of capacity. It is expected to begin service in the first half of 2021.
The pipeline will also allow Enterprise to optimise its entire Midland to Echo system, which will be comprised of four pipelines, by moving barrels in the most cost-efficient manner. The expansion will also enable the company to maximise the operation flexibility of the Seminole Red pipeline in either crude oil or NGL service based on the needs of the respective markets.
A.J ‘Jim’ Teague, CEO of Enterprise’s general partner, says: ‘Enterprise continues to benefit by providing customers with integrated crude oil services. Our system allows us to provide producers in the Permian Basin and Eagle Ford shale with segregated storage, transportation, distribution and marine terminal services. This integrated model supports customers’ need for flow assurance and market choices, whether the markets are domestic or international. It also enhances the value of production destined for international markets by assuring product segregation, quality and consistency based on the customer’s production.
‘Crude oil and NGL production from the Permian Basin and the Eagle Ford is expected to increase by five million barrels per day by 2025. This project gives us the flexibility to respond to changing customer demand for crude oil and NGL pipeline capacity over the long-term.’