Plans to Build Ethylene Export Dock and Related Projects
In January 2018, we announced the formation of a new 50/50 joint venture with Navigator Holdings Ltd. (“Navigator”) to construct, own and operate an ethylene export facility along the U.S. Gulf Coast. The export facility is expected to have the capacity to export approximately 1 million tons of ethylene per year, with loading rates of approximately 1,000 tons per hour. In addition, the facility is expected to include refrigerated storage for 30,000 tons of ethylene. The project, which is underwritten by long-term contracts with customers, is expected to be completed in the first quarter of 2020. The location and final investment decisions for the terminal are subject to reaching acceptable arrangements with local taxing authorities.
In April 2017, we announced two expansion projects that will further develop our ethylene infrastructure in the Houston, Texas area. First, we plan to repurpose a large, high-capacity ethane storage well at our Mont Belvieu, Texas complex into ethylene storage. Following completion of this project, which is expected in the fourth quarter of 2018, the 5.3 MMBbl cavern will be able to inject/withdraw ethylene at a rate of 210,000 pounds per hour (or approximately 2,000 barrels per hour) and is expandable to 420,000 pounds per hour (or approximately 4,000 barrels per hour). There are eight third party ethylene pipelines within a half-mile of the ethylene storage system, providing significant connectivity opportunities for the high-capacity system.
Further supporting our ethylene capabilities, we also plan to build a 24-mile, 12-inch or larger diameter ethylene pipeline extending from Mont Belvieu to Bayport, Texas. The new pipeline would have the potential to connect both producing and consuming customers located south of the Houston Ship Channel to our facility in Mont Belvieu.
Enterprise to Expand Butane Isomerization Facility
In January 2018, we announced plans to expand our butane isomerization facility by up to 30 MBPD of incremental capacity. This expansion is supported by new long-term agreements, including a 20-year, 35 MBPD fee-based, tolling arrangement, to provide butane isomerization, storage and pipeline services.
Enterprise to Expand Orla Natural Gas Processing Complex in West Texas
In January 2018, we announced plans to add 300 MMcf/d of incremental capacity at our cryogenic natural gas processing facility under construction near Orla, Texas in Reeves County. The addition of a third processing train at Orla (“Orla III”) would increase inlet volume capacity to 900 MMcf/d and allow us to expand our NGL extraction capabilities by an incremental 40 MBPD to 120 MBPD. Orla III is expected to begin service in the third quarter of 2019.
In June 2017, we announced plans to add a second processing train (“Orla II”) to our cryogenic natural gas processing facility currently under construction near Orla, Texas in Reeves County. Orla II is expected to add 300 MMcf/d of incremental processing capacity to the facility and double the inlet capacity of the facility to 600 MMcf/d and increase extraction of NGLs from up to 40 MBPD to up to 80 MBPD. Orla II is expected to begin service in the fourth quarter of 2018.
Mixed NGLs extracted at the Orla facility will be delivered into our fully integrated NGL system, including the recently announced Shin Oak NGL Pipeline (or “Shin Oak”). Residue natural gas volumes from the facility will be transported to the Waha area through our Texas Intrastate system. The Orla facility is designed to support the continued growth in NGL-rich natural gas production from the Delaware Basin of West Texas and southeastern New Mexico and is supported by long-term customer commitments.
Plans to Build Shin Oak NGL Pipeline
In April 2017, we announced plans to build Shin Oak, a 24-inch diameter pipeline, to transport growing NGL production from the Permian Basin to our NGL fractionation and storage complex located in Mont Belvieu, Texas. The Shin Oak NGL Pipeline is expected to have an initial design capacity of 250 MBPD and be expandable up to 600 MBPD. The project is supported by long-term shipper commitments and is expected to be placed into service during the second quarter of 2019.
Completion of Azure Acquisition
In April 2017, we closed on the acquisition of a midstream energy business from Azure Midstream Partners, LP and its operating subsidiaries (collectively, “Azure”) for $191.4 million in cash. The acquired business assets, which are located primarily in East Texas, include over 750 miles of natural gas gathering pipelines and two natural gas processing facilities with an aggregate processing capacity of 130 MMcf/d. The acquired business serves production from the Haynesville Shale and Bossier, Cotton Valley and Travis Peak formations.
Plans to Build Ninth NGL Fractionator at Our Mont Belvieu, Texas Complex
In March 2017, we resumed construction of our ninth NGL fractionator at our Mont Belvieu, Texas complex in anticipation of increased NGL production from the Permian Basin. The new fractionator, which is expected to be completed by mid-2018, would have a nameplate capacity of 85 MBPD. Upon completion of this expansion project, we would have approximately 755 MBPD of total NGL fractionation capacity at our Mont Belvieu complex and a combined 1.2 MMBPD of capacity across all of our NGL fractionators.
Plans to Construct Isobutane Dehydrogenation Unit at Mont Belvieu
In January 2017, we announced plans to construct a new isobutane dehydrogenation (“iBDH”) unit at our Mont Belvieu complex that is expected to have the capability to produce 425,000 tons per year of isobutylene. The project, which is underwritten by long-term contracts with investment-grade customers, is expected to be completed in the fourth quarter of 2019. Isobutylene produced by the new plant will provide additional feedstocks for our downstream octane enhancement and petrochemical facilities.
Historically, steam crackers and refineries have been the major source of propane and butane olefins for downstream use. However, with the increased use of light-end feedstocks, specifically ethane, the need for on-purpose olefins production has increased. Like our propane dehydrogenation (“PDH”) facility, the iBDH plant will help meet market demand where traditional supplies have been reduced. The new iBDH plant will increase our production of high purity and low purity isobutylene, which are used as feedstock to manufacture lubricants, rubber products and alkylate for gasoline blendstock, as well as methyl tertiary butyl ether for export.
In May 2016, we announced that our new cryogenic natural gas processing plant located in Eddy County, New Mexico (the â€śSouth Eddyâ€ť plant) had been placed into service. We constructed the South Eddy plant to serve producers in the Delaware Basin region. The South Eddy plant has a nameplate natural gas processing capacity of 200 MMcf/d and is capable of extracting up to 25 MBPD of NGLs. We also completed construction of approximately 90 miles of natural gas gathering pipelines to supply the new plant. In addition to the South Eddy plant and its related natural gas gathering infrastructure, we also completed a 71-mile extension of our Mid-America Pipeline System. This extension provides producers in the Delaware Basin with NGL takeaway capacity and direct access to our integrated network of NGL assets.
In August 2016, construction of our joint venture-owned Delaware Basin cryogenic natural gas processing plant (referred to as the â€śWahaâ€ť plant) was completed, and the facility was placed into service. The Waha plant, the construction of which is supported by long-term contracts, has a natural gas processing capacity of 150 MMcf/d and is able to extract in excess of 22 MBPD of NGLs. The plant is located in Reeves County, Texas and was designed to accommodate the growing production of NGL-rich natural gas from the Delaware Basin. We own a 50% equity interest in the joint venture that owns the Waha plant, which we operate.
In September 2016, we placed our ethane export terminal located at Morganâ€™s Point on the Houston Ship Channel (the â€śMorganâ€™s Point Ethane Export Terminalâ€ť) into commercial service, and the terminal loaded its first vessel bound for Europe with 265,000 barrels of ethane. The Morganâ€™s Point Ethane Export Terminal, which is the largest of its kind in the world, has an aggregate loading rate (nameplate capacity) of approximately 10,000 barrels per hour of fully refrigerated ethane. Supply for the Morganâ€™s Point Ethane Export Terminal is sourced from our Mont Belvieu NGL fractionation and storage complex and transported through a new 18-mile, 24-inch diameter pipeline that we completed in February 2016.
The Morganâ€™s Point Ethane Export Terminal supports growing international demand for abundant U.S. ethane from shale plays, which offers the global petrochemical industry a low-cost feedstock option and supply diversification. By providing producers with access to the export market, the Morganâ€™s Point Ethane Export Terminal is also facilitating continued development of U.S. energy reserves.
Enterprise extended its integrated system further into the natural gas liquids ("NGL") and condensate-rich areas of the Eagle Ford in 2015 by purchasing a 100 percent interest in EFS Midstream LLC ("EFS Midstream") from affiliates of Pioneer Natural Resources Company and Reliance Industries Limited for $2.15 billion. The assets include approximately 460 miles of natural gas pipelines, 10 central gathering plants, 780 million cubic feet per day of natural gas treating capacity and 119,000 barrels per day of condensate stabilization capacity.
According to the terms of the agreement, the Pioneer and Reliance joint development have dedicated its Eagle Ford Shale acreage to Enterprise under a 20-year, fixed-fee gathering agreement that includes a minimum volume requirement for the first seven years. The transaction also includes a related 20-year, fee-based agreement under which Enterprise will provide natural gas processing, NGL transportation and fractionation, as well as transportation services for natural gas, processed condensate and crude oil.
In July of 2015 Enterprise completed the sale of its offshore Gulf of Mexico pipelines and services business to Genesis Energy L.P. for approximately $1.5 billion in cash. The sale, which allows the company to divest assets not directly integrated with the rest of its midstream network, generated proceeds that significantly enhanced Enterprise's financial flexibility and allowed it to pursue attractive growth opportunities, particularly in the Eagle Ford Shale and Permian Basin.
In December of 2015, Enterprise completed the final expansion phase at its LPG export terminal at the Houston Ship Channel. The addition of a new refrigeration train has increased loading rates at the facility from 16,500 barrels per hour ("BPH") to approximately 27,500 BPH. As a result, Enterprise's capability to load low-ethane propane jumps from 9 million barrels per month to 16 million barrels per month.
In January 2014, our ATEX pipeline commenced operations. It transports ethane primarily Southbound from NGL fractionation plants located in Pennsylvania, West Virginia and Ohio to our Mont Belvieu storage complex. The ethane extracted by these fractionation facilities originates from the Marcellus and Utica Shale production areas. In addition to newly constructed pipeline segments, significant portions of the ATEX pipeline consist of segments that were formerly used in refined products transportation service by our TE Products Pipeline. Initial throughput capacity for the ATEX pipeline is 125 MBPD, which could be expanded to approximately 265 MBPD with certain system modifications.
In June 2014, Seaway Crude Pipeline Company LLC ("Seaway") completed a pipeline looping project involving its Longhaul System. This expansion project included the construction of an additional 512-mile, 30-inch pipeline that transports crude oil south from the Cushing hub to Seaway's Jones Creek terminal. With the looping project complete, the aggregate transportation capacity of the Longhaul System is approximately 850 MBPD, depending on the type and mix of crude oil being transported and other variables. Crude oil deliveries using the new pipeline (referred to as the "Seaway Pipeline looping project") commenced in December 2014. Seaway's Jones Creek terminal is connected to our ECHO crude oil storage facility located in Houston, Texas by a 65-mile, 36-inch pipeline. Construction of a 100-mile, 30-inch pipeline from ECHO to Beaumont/Port Arthur, Texas, was also completed in July 2014. These new pipeline construction projects complement ongoing expansion activities at ECHO, which include the completion of three new storage tanks during the second quarter of 2014.
On October 1, 2014, we completed step 1 of our Oiltanking acquisition for total considerations of approximately $4.4 billion. Oiltanking owns marine terminals located on the Houston Ship Channel and at the Port of Beaumont with a total of 12 ship and barge docks and approximately 26 MMBbls of crude oil and petroleum products storage capacity. Oiltanking's marine terminal on the Houston Ship Channel is connected by pipeline to our Mont Belvieu, Texas complex and is integral to our growing LPG export, crude oil storage and octane enhancement and propylene businesses. Our Enterprise Crude Houston ("ECHO") facility is also connected to Oiltanking's system. We have had a strategic relationship and enjoyed mutual growth with Oiltanking and its predecessors since 1983.
In March 2013, we completed an expansion project at our marine terminal located on the Houston Ship Channel that increased its loading capability from 4.0 MMBbls per month to 7.5 MMBbls per month. Our LPG export services continue to benefit from increased NGL supplies produced from domestic shale plays such as the Eagle Ford Shale and strong international demand for propane as a feedstock in ethylene plant operations and for power generation and heating purposes.
In September 2013, we announced an expansion project at this LPG export terminal that is expected to increase its ability to load cargoes from 7.5 MMBbls per month to approximately 9.0 MMBbls per month. This expansion project is expected to be completed in the first quarter of 2015. In January 2014, we announced a further expansion of this LPG export terminal that is expected to increase its ability to load cargoes from approximately 9.0 MMBbls per month to in excess of 16.0 MMBbls per month. Once this expansion project is completed, we expect our maximum loading capacity at this export terminal will be approximately 27,000 barrels per hour. This expansion project is supported by a 50-year service agreement with Oiltanking Partners, L.P. ("Oiltanking"), which has agreed to provide additional dock space and related services to us at the terminal site. The expanded LPG export terminal is expected to be in service by the end of 2015 and is supported by long-term LPG export agreements.
In November 2013, we announced that the eighth NGL fractionator at our Mont Belvieu complex was placed in service. This new unit, which has the capacity to fractionate up to 85 MBPD of NGLs, increases total NGL fractionation capacity at our Mont Belvieu complex to approximately 670 MBPD. This fractionator, along with a seventh unit placed into service in September 2013, was built to handle increasing NGL production from 69 domestic shale plays, including the Eagle Ford Shale in South Texas and other supply basins in the Rocky Mountains and Mid-Continent regions.
Our seventh and eighth NGL fractionators are owned by a joint venture, formed in June 2013, between us and Western Gas Partners, LP ("Western Gas"), which is an affiliate of Anadarko. We own 75% of the joint venture's member interests, with Western Gas owning a 25% noncontrolling interest in the joint venture.
Our Texas Express Pipeline and two related NGL gathering systems commenced operations in November 2013. The Texas Express Pipeline originates in Skellytown, Texas and extends approximately 580 miles to Mont Belvieu, Texas. The Texas Express Pipeline gives producers in West and Central Texas, the Rocky Mountains, southern Oklahoma, the Mid-Continent and the Denver-Julesburg supply basin much needed takeaway capacity for growing NGL production volumes and improved access to Mont Belvieu, which is the primary industry hub for domestic NGL production. The Texas Express Pipeline is owned by Texas Express Pipeline LLC, which is a joint venture among us and affiliates of Enbridge Energy Partners, L.P. ("Enbridge"), Anadarko and DCP. We operate the Texas Express Pipeline and own a 35% member interest in Texas Express Pipeline LLC. Initial throughput capacity for the Texas Express Pipeline is 280 MBPD, which could be expanded to approximately 400 MBPD with certain system modifications. In addition to the start of operations on the Texas Express Pipeline, service also commenced on two mixed NGL gathering systems developed by Texas Express Gathering LLC, which is a second joint venture among Enbridge, Anadarko and us. We own a 45% member interest in Texas Express Gathering LLC. Enbridge serves as operator of the two gathering systems, which link natural gas processing plants in the Anadarko/Granite Wash and Central Texas/Barnett Shale production areas to the Texas Express Pipeline.
In September 2013, we, along with Plains All American Pipeline, L.P. ("Plains"), announced an expansion of our Eagle Ford Crude Oil Pipeline System in South Texas. The expansion is expected to increase the pipeline system's capacity to transport light and medium grades of crude oil from 300 MBPD to 470 MBPD in order to accommodate expected volumes from Plains' Cactus pipeline. As currently planned, the expansion of our Eagle Ford Crude Oil Pipeline System would be completed in stages that include adding pumping capacity and looping certain segments of the existing system. The expansion also includes constructing an additional 2.3 MMBbls of operational storage capacity at Gardendale, Tilden and Corpus Christi, Texas. We expect the expansion to be completed during the second quarter of 2015.
In May 2013, we announced the development of a refined products export facility in Beaumont, Texas to meet growing demand for additional refined products export capability on the U.S. Gulf Coast. Export service at this marine terminal is expected to begin during the first quarter of 2014 and would accommodate Panamax class vessels. Panamax class vessels are medium-sized tanker ships designed to transit the existing lock chambers of the Panama Canal. This new export facility will complement our existing refined products pipelines, storage and terminal facilities in southeast Texas and enable us to provide customers with improved access to international markets.
Historically, southeast Texas refineries have been supplied primarily by waterborne imports of crude oil. With the increase in North American production, crude oil from the Eagle Ford, Permian, Mid-Continent, Bakken and Canada are flowing into Southeast Texas and displacing waterborne crude oil imports. Due to growing domestic production, we expect a significant increase in North American crude oil deliveries to the Gulf Coast market, which currently lacks sufficient storage capacity and has an inadequate distribution system for handling these varying grades of domestic crude oil. In response, we announced plans in May 2013 to significantly expand our crude oil storage and distribution infrastructure serving the southeast Texas refinery market. This planned expansion involves the construction of approximately 4.4 MMBbls of combined new crude oil storage capacity at our Enterprise Crude Houston ("ECHO") storage facility that will increase this facility's capacity to approximately 6.5 MMBbls. Also, we plan to construct 55 miles of associated pipelines to directly connect the ECHO storage facility with several major refineries in the Southeast Texas market. The expansion would be completed in phases with final completion expected in the second quarter of 2015. Upon completion of these projects, we will be able to provide southeast Texas refiners with an integrated system featuring supply diversification, significant storage capabilities and a high capacity pipeline distribution system that will be directly connected to refineries having an aggregate capacity of approximately 3.6 MMBPD. In addition, the ECHO storage facility will have access to our marine NGL and crude oil terminal at Morgan's Point on the Houston Ship Channel.
In March 2013, we announced the receipt of transportation commitments to support development of our 270-mile Aegis Ethane Pipeline, which will deliver ethane to petrochemical plants in the U.S. Gulf Coast region. The Aegis Ethane Pipeline will originate at our Mont Belvieu, Texas storage complex and have the capacity to transport up to 425 MBPD of purity ethane volumes to various petrochemical customers along the Gulf Coast of Texas and Louisiana. The Aegis Ethane Pipeline is expected to commence operations in stages, with initial sections starting service in the third quarter of 2014 and the remaining sections at different times through the second quarter of 2015.
In November 2012, the initial phase of our Enterprise Crude Houston (or "ECHO") storage terminal located in southeast Houston, Texas was partially completed and started receiving deliveries of crude oil. Completion of this first phase provides us with approximately 0.5 MMBbls of crude oil storage capacity (two tanks) at the site. A third tank was completed and placed into service in February 2013. An additional 0.9 MMBbls of storage capacity is expected to be in service as early as the second quarter of 2014. When fully developed, we estimate that the ECHO terminal could have up to 6.0 MMBbls of crude oil storage capacity.
In August 2012, we announced the formation of a 50/50 joint venture, Eagle Ford Pipeline LLC, with Plains All American Pipeline, L.P. ("Plains") to provide crude oil pipeline services to producers in South Texas. The arrangement provides for Enterprise and Plains to consolidate certain segments of previously announced pipeline projects servicing the Eagle Ford Shale supply basin. The joint venture pipeline system is supported by long-term commitments from producers totaling up to 210 MBPD of crude oil. This joint venture is expected to provide shippers with increased market flexibility and enable Enterprise and Plains to optimize their respective capital investments in the area.
The joint venture will include a 140-mile crude oil and condensate line extending from Gardendale, Texas in LaSalle County to Three Rivers, Texas in Live Oak County and continuing on to Corpus Christi, Texas, and a newly constructed 35-mile pipeline segment from Three Rivers to our Lyssy, Texas station in Wilson County. The system, which is currently under construction, is expected to have a capacity of 350 MBPD and will include a marine terminal facility at Corpus Christi and 1.8 MMBbls of operational storage capacity across the system. Segments of the new pipeline system are expected to be placed into service in the first quarter of 2013, with the balance of the system expected to be placed into service in the third quarter of 2013. Plains will serve as operator of the joint venture's pipeline system.
At Lyssy, the joint venture pipeline will interconnect with the Eagle Ford expansion of our South Texas Crude Oil Pipeline System, which commenced operations in June 2012 (see below). Our South Texas Crude Oil Pipeline System is not part of the new joint venture's pipeline system.
In June 2012, we announced plans to build one of the world's largest propane dehydrogenation ("PDH") units, with capacity to produce up to 1.65 billion pounds per year, which equates to approximately 750 thousand metric tons per year or 25 MBPD, of polymer grade propylene. The PDH facility is expected to consume up to 35 MBPD of propane as feedstock and be located in southeast Texas along the Gulf Coast. The new facility will be integrated with our existing propylene fractionation facilities, which will provide operational reliability and flexibility for both the PDH facility and the fractionation facilities. The PDH facility will also be integrated with our polymer grade propylene storage facilities, pipeline system and export terminal. The PDH facility, which is supported by long-term, fee-based contracts, is expected to begin commercial operations in 2016. We are in discussions with additional customers that could lead to the development of additional PDH capacity.
In June 2012, we announced that the Eagle Ford expansion of our South Texas Crude Oil Pipeline System commenced operations. This pipeline expansion, which has a crude oil transportation capacity of 350 MBPD, allows us to serve growing production areas in the Eagle Ford Shale supply basin. The new pipeline originates at our Lyssy station in Karnes County, Texas and extends 147 miles to Sealy, Texas and includes 2.4 MMBbls of crude oil storage, including 0.8 MMBbls in Karnes County, Texas, 0.4 MMBbls in Gonzales County, Texas and 1.2 MMBbls at Sealy. Crude oil supplies arriving at Sealy on the new pipeline are being delivered to Houston area refiners through affiliate and third party owned pipelines. In addition, shippers have access to our new ECHO crude oil storage terminal.
In June 2012, we and Enbridge Inc. announced that the Seaway Pipeline made its first delivery of crude oil to the Texas Gulf Coast. The arrival marked the first southbound delivery of crude oil by pipeline from the Cushing hub, and gives producers access to all of the major refineries in the Greater Houston area and Texas City. Additional pump station additions and modifications, which were completed in January 2013, are expected to increase the pipeline's throughput capacity.
In March 2012, we secured capacity commitments from shippers to proceed with an additional expansion of the Seaway Pipeline. This expansion project entails the construction of a 512-mile, 30-inch diameter pipeline mostly along the existing route of the Seaway Pipeline.
The Seaway Pipeline delivers crude oil from Cushing into the Houston and Texas City, Texas market utilizing affiliate and third party pipelines. Seaway Crude Pipeline Company LLC ("Seaway") is constructing a 65-mile pipeline that will link its pipeline system to our ECHO crude oil storage terminal. Completion of this pipeline segment is expected in the fourth quarter of 2013. In addition, Seaway plans to build an 85-mile pipeline from our ECHO terminal to the Port Arthur/Beaumont, Texas refining center that would provide shippers access to the region's heavy oil refining capabilities. Completion of this pipeline segment is expected in mid-2014.
In May 2012, we announced that the first phase (or "train") of our new cryogenic natural gas processing plant at Yoakum, Texas commenced operations. The second train commenced operations in late August 2012. In the aggregate, these two processing trains are processing up to a combined 700 MMcf/d of natural gas and extracting over 90 MBPD of NGLs. The third and final train at the Yoakum facility, which is the same size as each of the first two trains, is currently undergoing commissioning operations and is expected to be fully operational in March 2013.
In April 2012, we, along with WGR Asset Holding Company LLC, an affiliate of Anadarko Petroleum Corporation, and DCP Midstream Front Range LLC formed a new joint venture, Front Range, to design and construct a new NGL pipeline that will originate in the Denver-Julesburg Basin (the "DJ Basin") in Weld County, Colorado and extend 435 miles to Skellytown in Carson County, Texas. Each party holds a one-third ownership interest in the joint venture. The Front Range Pipeline, with connections to our Mid-America Pipeline System and the Texas Express Pipeline, will provide producers in the DJ Basin with access to the Gulf Coast, the largest NGL market in the U.S. Initial capacity on the Front Range Pipeline will be 150 MBPD, which can be readily expanded to 230 MBPD. We will construct and operate the pipeline, which is expected to begin service in the fourth quarter of 2013.
In March 2012, we announced plans to construct two additional NGL fractionators at our Mont Belvieu, Texas complex (NGL fractionators seven and eight) that are expected to provide us with 170 MBPD of incremental NGL fractionation capacity. The two new fractionation units (each with 85 MBPD of expected capacity) are forecast to commence operations during the fourth quarter of 2013 and support the continued growth of NGL production from resource basins such as the Eagle Ford Shale in Texas and various production areas in the Rocky Mountains and the Mid-Continent. Once NGL fractionators seven and eight are constructed and placed in service, our total gross NGL fractionation capacity at Mont Belvieu (then eight units in total) would approximate 655 MBPD. At that time, our system-wide fractionation capacity is expected to exceed 1.0 MMBPD.
In January 2012, we secured sufficient transportation commitments to support development of our 1,230-mile Appalachia-to-Texas pipeline (the "ATEX Express"), which will transport growing ethane production from the Marcellus and Utica Shale producing areas to the U.S. Gulf Coast. We received additional volume commitments during the third quarter of 2012. The project would utilize a combination of new and existing infrastructure.
Demand for ethane feedstock over more expensive crude oil-based derivatives within the Gulf Coast petrochemical market has reached over 1 MMBPD. Several petrochemical companies have made announcements to modify, expand or build new facilities that would use ethane as a feedstock.
Commercial operations on the Haynesville Extension of our Acadian Gas system began in November. This provides producers in Louisiana's Haynesville and Bossier Shale plays with access to 1.8Bcf/d of incremental natural gas takeaway capacity.
Enterprise ("EPD") announced significant capital growth projects in 2011, largely focused on newly developing shale plays where we have an existing presence and the ability to link-and-lever new builds with our existing infrastructure. The majority of capital growth will be in the Eagle Ford shale area in South Texas. We've announced a number of expansions in that area including gathering systems, a state-of-the-art gas processing facility, pipelines (natural gas, crude, and NGL), as well as NGL fractionators in Mont Belvieu.
Enterprise completed a merger with Duncan Energy Partners (DEP) in September, with each common of Duncan converting to 1.01 common units of EPD.
Announced the passing of its chairman, Dan L. Duncan. Mr. Duncan co-founded Enterprise Products Company in 1968 and took Enterprise public in 1998.
Completed the purchase of the State Line and Fairplay natural gas gathering and treating systems from subsidiaries of M2 Midstream LLC for approximately $1.2 billion. Located in northwest Louisiana and East Texas, these assets gather natural gas produced from the Haynesville/Bossier Shales and the Cotton Valley and Taylor Sands formations and will complement the extension of Enterprise's Acadian pipeline system, which will provide shippers with takeaway capacity from the growing Haynesville Shale.
Completed $9 billion merger with Enterprise GP Holdings L.P. (EPE) in a unit-for-unit exchange resulting in the cancellation of the 2% economic general partner interest, the general partner incentive distribution rights in Enterprise and approximately 21.6 million Enterprise common units owned by EPE. EPE unitholders received 1.5 EPD common units of Enterprise in exchange for each EPE limited partner unit.
Announced along with Duncan Energy Partners the completion of the 174-mile Sherman Extension of the Enterprise Texas Intrastate natural gas pipeline system. The 36-inch diameter pipeline has the capacity to transport 1 Bcf/d of natural gas from the Barnett Shale to Boardwalk Pipeline Partners, L.P.'s Gulf Crossing pipeline near Sherman, Texas.
Announced the completion of its crude oil pipeline serving the BHP-Billiton-operated Shenzi field in the Gulf of Mexico. The 83-mile, 20-inch diameter pipeline, with a capacity of 230,000 barrels per day of crude oil, is now transporting production from the deepwater discovery located at Green Canyon Block 653.
Announced along with TEPPCO Partners and Enterprise GP Holdings that Enterprise and TEPPCO entered into definitive agreements to merge the two partnerships to form the largest publicly traded energy partnership with an enterprise value of more than $26 billion. The combined partnership will retain the name Enterprise Products Partners L.P. and will access the largest producing basins of natural gas, natural gas liquids (NGLs) and crude oil in the United States and will serve some of the largest consuming regions for natural gas, NGLs, refined products, crude oil and petrochemicals.
Announced plans to build a new 75,000 barrels per day (BPD) natural gas liquid (NGL) fractionator at its Mont Belvieu, Texas complex that will provide the partnership with additional capacity to better accommodate growing NGL volumes from producing areas in the Rockies, the Barnett Shale and the emerging Eagle Ford Shale play in South Texas. The project will increase Enterprise's NGL fractionation capacity at Mont Belvieu to approximately 300,000 BPD and net system-wide capacity to approximately 600,000 BPD.
Announced the merger of Enterprise Products Partners and TEPPCO Partners, creating the nation's largest publicly traded energy partnership with an enterprise value of approximately $30 billion, 48,000 miles of pipelines and market capitalization of $18 billion. Under the terms of the merger agreement, TEPPCO unitholders will receive 1.24 Enterprise common units for each TEPPCO unit owned at the effective time of the merger, which was October 26, 2009. The merger agreement was approved by TEPPCO unitholders at a special meeting held on October 23, 2009.
Announced along with Duncan Energy Partners plans for their jointly owned Acadian Gas LLC subsidiary to extend its Louisiana intrastate natural gas pipeline system into Northwest Louisiana to provide producers in the Haynesville Shale play with access to attractive markets through connections with Acadian's existing 1,000 mile pipeline system in South Louisiana and nine major interstate pipelines. This project will have the capacity to transport up to 1.4 billion cubic feet per day from the Haynesville area through a 249-mile, 36-inch and 30-inch diameter pipeline that will connect to Acadian's existing system as well as its affiliated Cypress Gas Pipeline.
Provided an update on two pipeline projects currently under construction that are expected to provide in excess of 200 million cubic feet per day (MMcfd) of incremental transportation capacity for natural gas production from the Eagle Ford Shale formation in the first quarter of 2010. The White Kitchen Lateral, a new 62-mile, 16-inch diameter natural gas pipeline runs through the heart of the Eagle Ford Shale play and connects two existing 20-inch diameter pipelines that lie at opposite ends of the development that are part of Enterprise's South Texas Pipeline system. An additional segment to further expand the capacity of this pipeline is scheduled for completion in the second quarter of 2010, at which time the system is expected to provide in excess of 200 MMcfd of incremental natural gas pipeline capacity. Another 34-mile, 24-inch diameter natural gas pipeline is under construction that will be the first segment of a major, east-west Eagle Ford Shale mainline and designed to connect to the partnership's South Texas pipeline system in southwest LaSalle County to the White Kitchen Lateral and should also be in service in the second quarter of 2010.
Completed its second drop down transaction by contributing partnership interests in three midstream energy companies to Duncan Energy Partners in a transaction valued at $730 million. Duncan Energy acquired a 51 percent membership interest in Enterprise Texas Pipeline LLC; a 51 percent general partnership interest in Enterprise Intrastate LP; and a 66 percent general partnership interest in Enterprise GC LP. In aggregate, these companies own more than 8,000 miles of natural gas pipelines with 5.6 billion cubic feet per day ("Bcf") of capacity; a leased natural gas storage facility with 4.4 Bcf of storage capacity; more than 1,000 miles of natural gas liquids ("NGL") pipelines; approximately 18 million barrels of leased NGL storage capacity; and two NGL fractionators with a combined fractionation capacity of 87 thousand barrels per day. As consideration, Enterprise received $280.5 million in cash and 37.3 million of Class B units of Duncan Energy, having a market value of $449.5 million. The Class B units issued will automatically convert to common units of Duncan Energy on a one-to-one basis on February 1, 2009.
Initial public offering of Duncan Energy Partners, L.P. (NYSE: DEP) of 14,950,000 common units priced at $21.00 per common unit. Duncan Energy Partners was formed to own interests in certain midstream assets of Enterprise and may, from time to time, acquire interests in midstream assets from affiliates of Enterprise or, under certain circumstances, from third parties.
Independence Hub production platform was successfully installed at its deepwater site in the Mississippi Canyon area of the eastern Gulf of Mexico and began earning demand revenues.
Began processing natural gas at its Meeker cryrogenic facility located in Colorado's Piceance Basin. This state-of-the-art facility can process up to 750 million cubic feet per day of natural gas and is capable of extracting up to 35,000 barrels per day of natural gas liquids.
Acquired certain natural gas gathering systems and related gathering and processing contracts from Cerrito Gathering Company, Ltd. The Cerrito gathering systems are comprised of approximately 484 miles of pipeline (including approximately 172 miles of pipe currently under lease from Enterprise) and 31,000 horsepower compression, and are connected to over 1,450 wells with a n aggregate volume of over 100 million cubic feet per day (MMcfd) of rich natural gas sourced from the Olmos and Wilcox Trends in South Texas.
Announced along with TEPPCO through its Jonah Gas Gathering Company joint venture, that a new pipeline looping project, constructed as part of the Phase V expansion of the Jonah Gas Gathering System, was put in service. The pipeline looping project is the first segment of the Phase V expansion and includes 75-miles of 36-inch diameter pipe and 12 miles of 24-inch diameter pipe that transport natural gas from the Jonah and Pinedale fields to processing plants and interstate pipelines near Opal, Wyoming.
Purchased Piceance Creek Pipeline, LLC, from EnCana Oil & Gas Inc. The assets of Piceance Creek Pipeline, LLC consist primarily of a recently constructed 48-mile, 36-inch diameter natural gas gathering pipeline in the Piceance Basin of northwest Colorado. As part of the transaction, EnCana signed a long term, fixed-fee gathering contract and dedicated significant production to the system for the life of the associated lease holdings.
Acquired natural gas gathering and processing companies from El Paso Corporation that own an 80% interest in 3 gathering systems and a 75% interest in the Indian Springs gas processing facility, all located in Polk County, Texas for $74.5 million.
Announced first deliveries of crude oil to major refining markets on the Texas Gulf Coast through the recently completed Cameron Highway Oil Pipeline System. The pipeline has the capacity to deliver up to 600 MBPD of crude oil to the United States' largest refining complex on the Texas Gulf Coast. The first five wells have been connected and Cameron Highway is delivering approximately 100 MBPD of crude oil. Production is expected to ramp up throughout 2005 and 2006 as additional wells are completed.
Announced plans to proceed with the construction of a new NGL fractionator that will be located at the interconnection of the Mid-America Pipeline System (MAPL) and the Seminole Pipeline System near Hobbs, New Mexico. The new fractionator will be designed to handle up to 75,000 barrels per day of mixed NGLs which will be sourced from current and future processing plants located in the Rocky Mountain region, the Permian Basin, and in the Panhandle area of Texas and Oklahoma on MAPL.
Expanded integrated network of NGL assets in the Permian Basin and Mid-Continent region of the United States with the $144 million purchase of NGL underground storage and terminalling assets from a subsidiary of Ferrellgas Partners, L.P.
Acquired Texas Eastern Products Pipeline Company, LLC, the general partner of TEPPCO Partners, L.P. ("TEPPCO"), a master limited partnership formed in 1990, for $1.1 billion.
Completed the initial public offering of Enterprise GP Holdings, L.P. (NYSE: EPE) by issuing 14,216,700 common units priced at $28.00 per common unit. EPE owns 100% of the general partner of EPD.
Enterprise completed its merger with GulfTerra effective September 30, creating one of the largest publicly traded energy partnerships with an enterprise value of approximately $14 billion. In related transactions, Enterprise purchased approximately 13.8 million GulfTerra limited partner units for $500 million from El Paso Corporation and the remaining 57.8 million common units of GulfTerra were converted into approximately 104.5 million Enterprise common units based on an exchange rate of 1.81 Enterprise units for each GulfTerra unit. Enterprise also acquired nine natural gas processing plants and related facilities located in South Texas from El Paso Corporation for $156 million.
Announced agreements with Atwater Valley Producers Group, consisting of five independent E&P companies, to construct a deepwater hub platform and a pipeline that will process and transport up to 850 million cubic feet per day of natural gas from the eastern Gulf of Mexico. Enterprise will design, construct, install and own, and Anadarko will operate Independence Hub, a 105-ft. semi-submersible platform located on Mississippi Canyon block 920 for approximately $385 million. The platform is designed to process production from six anchor fields and has the capacity to connect 10 additional fields. Additionally, Enterprise will own, install and operate Independence Trail, a 24-inch, 140-mile pipeline at an estimated cost of $280 million that will redeliver production from the platform into Tennessee Gas Pipeline.
Purchased the remaining 50% interest in the EPIK NGL export terminal for $19 million. The terminal has the capacity to load refrigerated propane and butane at rates of 5,000 Bbls/hour, which are the highest loading rates for any NGL export terminal in the U.S. Enterprise now owns 100% of this export terminal.
Completed the expansion of the Lou-Tex NGL pipeline, which increased the capacity by 40% to 70,000 BPD from 50,000 BPD for only $2 million. This bi-directional pipeline with storage on both ends of the system is the only pipeline that effectively connects NGL supplies and markets in Louisiana with the Texas Gulf Coast.
Announced that the Board has approved the implementation of a cash distribution reinvestment plan ("DRIP") for the Partnership's common limited partner units. Units acquired through the drip may be purchased at a 0% to 5% discount to the market price.
Announced jointly with GulfTerra Energy Partners, L.P. and El Paso Corporation the execution of definitive agreements to merge Enterprise and GulfTerra to form the second largest publicly traded energy partnership.
Acquired a natural gas liquids and petrochemical liquids storage business from Diamond-Koch for $130 million in cash. The assets include 25 salt dome storage caverns at Mont Belvieu, Texas with a useable capacity of 64 million barrels, local distribution pipelines and related equipment.
Acquired various propylene fractionation assets and certain inventories of propylene and propane from Diamond-Koch for approximately $239 million in cash. The acquisition includes a 66.7% interest in a polymer-grade propylene fractionation facility located in Mont Belvieu, Texas, a 50% interest in a polymer-grade propylene export terminal located on the Houston Ship Channel and various distribution pipelines and related equipment. The Mont Belvieu facility has capacity to produce approximately 41,000 barrels per day of polymer-grade propylene.
Announced a two-for-one split for each class of the company's limited partner units that was completed on May 15, 2002, affecting holders of record on April 30, 2002.
Acquired a 12.5% ownership interest in an NGL fractionator from an affiliate of ChevronTexaco. The fractionator is located at the Mont Belvieu complex and has the capacity to separate 210,000 barrels per day of mixed NGLs into ethane, propane, normal butane, isobutane and natural gasoline. Enterprise now owns 75% of this facility and is operator.
Acquired 100% of the Toca-Western natural gas processing plant and natural gas liquids fractionator from Western Gas Resources for $32.5 million in cash. The gas processing facility has a capacity of 160 million cubic feet per day and the fractionator can separate 14,200 barrels per day of mixed NGLs into propane, normal butane, isobutane and natural gasoline.
Acquired a 98% ownership interest in the Mid-America pipeline system and a 78% interest in the Seminole pipeline system from The Williams Companies, Inc. for approximately $1.2 billion in cash. Mid-America is a 7,226-mile NGL pipeline system connecting the Hobbs hub located on the Texas-New Mexico border with supply regions in the Rocky Mountains and the Midwest. Seminole is a 1,281-mile pipeline system that interconnects with the Mid-America pipeline system at Hobbs and transports mixed NGLs to Mont Belvieu, Texas. In 2001, average transportation volumes were 641,000 and 241,000 barrels per day on the Mid-America and Seminole pipelines, respectively.Amended the partnership agreement to cap the general partner's incentive distribution right at 25% from 50% of total cash distributions. There was no consideration paid to the general partner to give up this right.
Acquired ownership interests in five natural gas pipeline and gathering systems in the central Gulf of Mexico for $112 million. These systems total approximately 725 miles of pipeline with an aggregate capacity of approximately 2,850 million cubic feet per day.
Acquired Acadian Gas LLC from an affiliate of Shell Oil Company for $244 million in cash. Acadian's assets consist of three Louisiana intrastate pipeline systems with over 1,000 miles of pipeline with a combined capacity of over one billion cubic feet per day.
Commenced operations at the Neptune Natural Gas Processing Plant. Neptune, with the capacity to process 300 million cubic feet per day of natural gas, is located in St. Mary Parish, La., and processes natural gas that is transported on the Nautilus pipeline system. Enterprise operates the plant and has a 66 percent ownership interest, with Marathon Oil Company holding the remaining 34 percent interest.
Commenced operations of Baton Rouge Propylene Concentrator LLC, a joint venture between affiliates of ExxonMobil Chemical Company and Enterprise. The unit upgrades refinery-grade propylene produced by ExxonMobil Chemical and others into chemical-grade propylene, a basic building block petrochemical used in plastics, synthetic fibers, and foams. The facility has the capacity to produce 1.5 billion pounds (680,000 metric tons) per year of chemical-grade propylene.
Completed construction of 12-inch diameter, 206-mile, Lou-Tex NGL Pipeline.
Agreed to acquire Lou-Tex propylene pipeline from an affiliate of Shell Chemical. The pipeline transports propylene from Sorrento, Louisiana to Mont Belvieu with 30,000 barrels per day of capacity.
Formed a joint venture with Exxon Chemical to construct a propylene concentrator in Baton Rouge, Louisiana with 22,500 barrels per day of production capacity. Construction was completed in mid-2000.
Acquired Tejas Natural Gas Liquids from an affiliate of Shell Oil Company for approximately $375 million in cash and convertible special partnership units. Executed a 20-year natural gas processing agreement with Shell for rights to process all of Shell's natural gas production from the Gulf of Mexico.
Acquired an additional 25% interest in a natural gas liquids fractionator from Kinder Morgan Energy Partners for approximately $45 million in cash and assumed debt. The fractionator, which is located at Mont Belvieu, Texas has a capacity to separate 210,000 barrels per day of natural gas liquids. Enterprise now owns 62.5% of this facility.
Completed construction of a refrigerated export facility located at Enterprise's Houston Ship Channel terminal, with 5,000 barrels per hour of loading capacity.
EPD Initial Public Offering
Issued 12,000,000 limited partner common units in an initial public offering at $22/unit. The net proceeds of $247.2 million were reinvested in the company to fund project developments and future acquisitions. Enterprise Products Partners L.P. is listed on the New York Stock Exchange under ticker symbol EPD.
Mont Belvieu NGL Fractionation Expansion
Completed expansion of Mont Belvieu NGL fractionation capacity for the 4th time to 210,000 barrels per day.
Belvieu Environmental Fuels' MTBE Plant
Completed construction of Belvieu Environmental Fuels' MTBE plant with affiliates of Mitchell Energy and Sun Oil Company as partners.
Isomerization Unit III
Completed construction of isomerization unit III with 44,000 barrels per day of production capacity and expansion of isomerization unit I capacity to 36,000 barrels per day.
Completed construction of 16-inch pipeline from Mont Belvieu storage complex to Houston Ship Channel import/export terminal.
Completed expansion of isomerization unit II to 36,000 barrels per day of production capacity.
NGL Import/Export Facility
Enterprise Products completed the construction of its NGL import/export facility on the Houston Ship Channel.
Seminole NGL Fractionator
Enterprise Products completed construction of the Seminole NGL fractionator at Mont Belvieu with 60,000 BPD of capacity.
Completed construction of Isomerization units I and II at Mont Belvieu, each with 12,000 barrels-per-day of production capacity.
Completed construction of the West Texas natural gas liquids fractionator at Mont Belview with 35,000 barrels-per-day of capacity.
Acquired Wanda Petroleum Company (pipeline and storage assets) from Dow Chemical.
Completed construction of Lake Charles, Louisiana and Bayport, Texas propylene pipelines.
Completed construction of Mont Belvieu storage and pipeline complex.
Completed construction of a natural gas liquids fractionator at Petal, Mississippi.
Completed construction of Chunchula and Sorrento NGL pipelines.
Enterprise Products purchased Cango, the predecessor of Enterprise Transportation Company.
Mont Belvieu Pipelines
Enterprise Products completed construction of pipelines at Mont Belvieu, TX.
Enterprise Products Founded
Enterprise Products Company ("Enterprise Products") formed as a wholesale marketer of natural gas liquids (NGLs).