(Source: Datamonitor)
SUG Energy, which is a subsidiary of the Southern Union Company, and Enterprise Products Operating, which is an affiliate of Enterprise Products Partners, have entered into a 10-year, natural gas liquids fractionation agreement.
The agreement provides Southern Union with up to 38,000 barrels per day (bpd) of firm fractionation capacity at Enterprise's Mont Belvieu, Texas, facility beginning January 1, 2010.
With capacity of 225,000bpd, Enterprise's Mont Belvieu facility is claimed to be the world's largest fractionation complex, and reportedly accesses the largest concentration of refineries and petrochemical plants in the world. Enterprise also has more than 100 million barrels of liquids storage capacity at Mont Belvieu.
Jim Teague, Enterprise's executive vice president and chief commercial officer, said: "This agreement is a clear illustration of our ongoing strategy to utilize the core assets that comprise our integrated energy value chain as a foundation for building mutually beneficial, long-term relationships.
"As the largest natural gas liquids (NGL) hub in the country, Enterprise's Mont Belvieu complex is a strategically important component of the nation's energy infrastructure, and we look forward to providing Southern Union with additional business opportunities to maximize the value of their midstream operations."
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