Enterprise, Enbridge, Anadarko To Build Texas NGL Pipeline

Enterprise Products Partners LP, Houston, (NYSE: EPD), Enbridge Energy Partners LP, Houston, (NYSE: EEP) and Anadarko Petroleum Corp., Houston, (NYSE: APC) reached an agreement to design and build the Texas Express natural gas liquids (NGL) pipeline that will run 580 miles from Skellytown, Texas to Mont Belvieu.

The pipeline, which will have an initial capacity of 280,000 barrels per day (b/d) and be expandable to 400,000 b/d, will also feature two new gathering systems. One of these systems will connect the pipeline to processing plants in the Anadarko/Granite Wash region and the other system will connect the pipeline to processing plants in the Barnett Shale.

Enterprise will build and operate the Texas Express Pipeline, while Enbridge will build and operate the gathering systems. The project and its related gathering systems are expected to be brought online in Q2 2013.

"We are very pleased to partner with Enbridge and Anadarko on this project, which offers a comprehensive industry solution for addressing NGL transportation constraints that are currently limiting access to the largest domestic NGL market located along the Gulf Coast," says Michael A. Creel, Enterprise president and chief executive, in a news release. "The new pipeline and gathering systems, which are underpinned by long-term contracts, will also have the capability to provide takeaway capacity for other producing areas not presently served by the MAPL system, including Oklahoma's Granite Wash, the Anadarko-Woodford basin, and the Barnett Shale. Wider access to multiple production areas, in addition to a competitive transportation fee structure, makes this an attractive option for producers and natural gas processors. NGLs controlled by affiliates of Enterprise, Enbridge and Anadarko will solidly anchor the project."

"Enbridge is also very pleased to be working with Enterprise and Anadarko on this critical NGL pipeline,” says Mark Maki, president of Enbridge Energy Partners. "Through our extensive gathering and processing assets, Enbridge has developed a significant and growing NGL supply position in Texas and Oklahoma. The Texas Express Pipeline will provide guaranteed NGL access to the primary U.S. petrochemical market in Mont Belvieu, ensuring premium NGL netbacks for our customers. Importantly, the Texas Express pipeline fulfills a key strategic objective of Enbridge to extend our value chain from gathering and processing to include NGL transportation, providing Enbridge's unit holders with a new source of strong and stable cash flow."

Anadarko vice president, Midstream, Danny Rea, adds, "This project will further enhance our ability to consistently access premium Mont Belvieu markets and increase the wellhead netbacks for our growing NGL production from our Rockies and Texas assets, as well as better align our interests with the project developers through our equity participation."