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As the character Ray Kinsella says in the movie Field of Dreams, "If you build it they will come." However, midstream companies can’t afford to take that chance without commitments from operators.
The rapidly expanding Eagle Ford shale play has a clear need for additional midstream facilities; in response to this, Enterprise Products Partners LP (EPD) is eager to expand their operations in the area as commitments increase according to Mike Creel, president and chief executive, who spoke at Hart Energy’s sixth annual Developing Unconventional Gas (DUG) conference and exhibition in Fort Worth, Texas, on April 19.
According to Creel, "Enterprise Products Partners has one of the most comprehensive, integrated midstream systems for natural gas, NGLs, petrochemicals, crude oil and refined products in the U.S."
The company’s assets include 50,200 miles of natural gas, NGL, crude oil, refined products and petrochemical pipelines; 192 MMBbls of liquid hydrocarbons and 27 Bcf of natural gas storage capacity; 25 natural gas processing plants; 19 NGL and propylene fractionators; six offshore hub platforms; NGL import/export terminals; a butane isomerization complex; a octane enhancement facility; and, a high-purity isobutylene facility.
EPD is proud of its ability to build a "value chain." The company entered the Jonah/Pinedale and Piceance basins in 2005 "when tight sands were the emerging play," said Creel. Since 2005, volumes have grown 65% in the Jonah/Pinedale area and 250% in the Piceance Basin, he added. Investment to date in these areas has been approximately $3.2 billion.
In the Haynesville shale Enterprise’s Acadian extension has 150 end-use markets, a storage facility and connection to the Henry Hub. Additionally, it will provide access to nine interstate pipelines and two intrastate pipelines.
In the Eagle Ford shale the company has approximately 85% of capacity subscribed by third parties; the majority are producers, utilities and power plants. The Sherman Extension has capacity of 1.2 Bcf/d; the Wilson Storage will add 5 Bcf capacity and should be complete by the end of this month.
Creel noted that Enterprise is "strategically positioned to serve the Eagle Ford, Haynesville and Woodford shale plays" and well positioned to provide additional services in emerging plays like the Niobrara, Mancos, Avalon, and Bone Spring.
Enterprise also has an integrated NGL value chain which supports growth in NGL demand for both domestic petrochemical customers and exports to international markets.
Enterprise Products is in the field to make unconventional resource operator’s dreams come true.
Contact the author, Ann Priestman, at apriestman@hartenergy.com.
