Enterprise Products Partners LP said April 30 it executed long-term agreements for development of a new 416-mile, 24-inch diameter pipeline to transport crude oil and condensate from the company’s Midland, Texas, terminal to its Sealy storage facility west of Houston.
From Sealy, the new pipeline would link to Enterprise’s ECHO terminal through an interconnect with the Rancho II pipeline, which is scheduled to be in service in July 2015. Through ECHO, customers will have direct access to every refinery in Houston, Texas City, Beaumont and Port Arthur, as well as Enterprise’s dock facilities.
The new pipeline will handle 540,000 barrels per day (bbl/d) of crude oil takeaway capacity and Permian Basin condensate. Service is expected to begin in 2017’s second quarter.
The hydrocarbons will be gathered into Enterprise’s Midland terminal and then delivered in four segregated batches to Sealy. The different grades include West Texas Sour, West Texas Intermediate, Light West Texas Intermediate and condensate. Enterprise is adding incremental storage capacity to support the new pipeline and the existing West Texas Gathering System.
Enterprise now has about $7.5 billion of capital growth projects under construction, several of which will benefit pipeline customers. The Rancho II Pipeline, which extends 88 miles from Sealy to the ECHO terminal, will handle more than 1 MMbbl/d of crude and Permian and Eagle Ford condensate.
Houston-based Enterprise Products Partners LP is a domestic-focused midstream company.
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