Anadarko, partners to build 580-mile NGL pipeline in Texas

06 September 2011 13:43  [Source: ICIS news]

HOUSTON (ICIS)--Anadarko, Enbridge and Enterprise plan to jointly develop a 580-mile natural gas liquids (NGL) pipeline in Texas, with start-up targeted for the second quarter of 2013, the energy firms said on Tuesday.

The “Texas Express Pipeline” (TEP), running from Skellytown in TexasCarson County to Mont Belvieu, Texas, will provide gas producers in west and central Texas, the Rocky Mountains, southern Oklahoma and the US mid-continent with takeaway capacity to the US Gulf coast NGL market.

The pipeline’s initial capacity will be about 280,000 bbl/day, with possible expansion to 400,000 bbl/day at a later time, the companies said in a joint statement.

The TEP will supply petrochemical facilities with a reliable source of feedstock, they said. 

“Demand for natural gas-derived feedstocks remains strong, driven by the wide spread between crude oil and natural gas prices,” they added.

The plan includes two NGL gathering systems. The first will connect the TEP to natural gas processing plants in the Texas Panhandle and western Oklahoma. The second NGL gathering system will connect the new pipeline to Barnett shale processing plants in central Texas.

Enterprise CEO Michael Creel said the pipeline project will offer a “comprehensive industry solution” for NGL transportation constraints that are limiting access to the large Gulf coast NGL market.

Expected project costs were not disclosed.

By: Stefan Baumgarten
+1 713 525 2653

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