Enterprise agrees to take Chesapeake’s NGLs from Texas shale

20 December 2010 22:37  [Source: ICIS news]

HOUSTON (ICIS)--US pipeline company Enterprise Products Partners said on Monday it has partnered with shale gas producer Chesapeake in a logistics deal to bring the company’s Eagle Ford natural gas liquids (NGL) production to market.

Under the 10-year agreements, Enterprise would take Chesapeake’s liquids-rich gas derived from the Eagle Ford shale in south Texas to its fractionation complex at Mont Belvieu, Texas.

That site in Texas is also the pricing hub for NGL products such as ethane, butane and propane that are used as feedstock in petrochemical production.

Chesapeake, the country’s largest independent natural gas producer, would transfer the gas to Enterprise at a central location and the company would bring the gas to a natural gas processing plant in Texas. The facility was set be completed in early 2012 with the ability to process up to 75,000 bbl/day of NGL.

The processed NGL would then be sent to Mont Belvieu in pipeline stretching 127 miles that was also expected to be finished in 2012. The pipeline capacity should be 85,000 bbl/day, Enterprise said in a statement.

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By: Ryan Hickman
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