Construction continues to increase on the midstream front as midstream operators expand systems to keep up with the pace of drilling. West Texas' Eagle Ford shale play features strongly this month, and based on public drilling and production data, midstream construction activity is expected to climb for quite some time.

Currently, about 150 rigs are working in the play and more than 500 wells have been drilled to date with some 300 additional wells in various stages of completion. Current production from the play is estimated at about 750 million cubic feet per day of natural gas and 80,000 barrels (bbl.) per day of crude oil and condensate.

Recently, Koch Pipeline Co. LP announced plans to build a crude oil pipeline from Pettus, Texas, to Corpus Christi, Texas, to move more Eagle Ford production. Current plans include a 20-inch line, which is currently in the permitting and right-of-way acquisition phase and should be complete in mid-2012. The completion of the line is timed with affiliate Flint Hills Resources' updates to an Ingleside terminal that will have the capacity to ship up to 200,000 bbl. per day of production via barge to other Gulf Coast markets.

Also, Enterprise Products Partners LP recently announced four new midstream projects to increase capacity in multiple areas, focusing strongly on supporting Eagle Ford shale take-away. Due to the increased demand for natural gas liquids (NGLs), Enterprise will nearly double the capacity of its import-export terminal on the Houston Ship Channel in the second half of 2012.

Plans call for the company to increase the fully refrigerated export loading capacity for NGLs to more than 10,000 bbl. per hour, while enhancing its ability to load multiple vessels simultaneously. Its export terminal is fully subscribed for the rest of the year and much of 2012.

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