Enterprise Products Partners LP (NYSE: EPD) on July 5 announced it has executed additional long-term contracts to provide transportation services on the Midland-to-ECHO (Enterprise Crude Houston) crude oil pipeline system.
The execution of these additional agreements brings total committed volumes on the Midland-to-Sealy segment of this system to 335,000 barrels per day (Mbbl/d), which represents approximately 83% of the segment’s ultimate committed capacity of 405 Mbbl/d. Total capacity for the pipeline segment will be 450 Mbbl/d, which will include 45 Mbbl/d of “walk-up” capacity.
“We are very pleased to announce these additional commitments,” said A.J. “Jim” Teague, CEO of the general partner of Enterprise. “Our Midland-to-ECHO crude oil system is attractive to large producers in the Permian that control and market their own production. Our transportation, storage and distribution system connects Permian producers to dedicated storage facilities, over 4 million bbl/d of refinery demand on the Texas Gulf Coast as well as international markets through Enterprise’s export marine terminals on the Houston Ship Channel and Beaumont. We believe access to waterborne international markets is essential to Permian producers to maximize the value of their light crude oil and condensate production.”
The Midland-to-Sealy pipeline is expected to begin limited commercial activities during fourth-quarter 2017. The pipeline is scheduled to be in full service, including the capability to batch four grades of crude oil, with 450 Mbbl/d of capacity by second-quarter 2018. Committed volumes ramp up through 2021 with 90% of the total committed volumes scheduled to ramp up by year-end 2019.
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