11 November 2010 20:32 [Source: ICIS news]
HOUSTON (ICIS)--Enterprise Products Partners will construct pipelines and build a crude oil storage facility to link Houston-area refiners to growing shale oil production in south Texas, the logistics provider said on Thursday.
The system should begin operating in mid-2012, Enterprise said.
Crude oil would be delivered to the facility through Enterprise’s existing Rancho pipeline, as well as the construction of two new, 24-inch diameter pipelines, the company said.
The infrastructure would link Texas refiners in Texas City, Pasadena, Deer Park, Baytown and along the Houston Ship Channel to the growing Eagle Ford Shale play in south Texas, the group said.
A 150-acre tract in an industrial area of southeast Houston has already been purchased as the site for the storage facility, Enterprise said.
While the facility would initially store crude from the Eagle Ford Shale, Enterprise said it envisioned further expanding the facility to also store production from offshore and Canadian sources.
“The terminal and associated pipelines will be especially important to refiners that are depending on reliable, local supplies to support expansion projects,” said Mark Hurley, senior vice president of crude oil and offshore for Enterprise.
“Domestic crude oil from the Eagle Ford Shale also reduces the country’s dependence on foreign sources for producing gasoline and other refined products,” he added.
Financial costs of the plan were not disclosed.
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