Sep. 15, 2009 (Business Wire) -- Enterprise Products Partners L.P. (NYSE:EPD) today announced it has entered into a long-term agreement to provide natural gas transportation and processing services on dedicated acreage owned by one of the largest and most active producers in the developing Eagle Ford Shale play. The agreement covers more than 150,000 acres in the heart of the Eagle Ford Shale play. Stretching from the Mexico border along the Gulf Coast to near Louisiana, the Eagle Ford Shale covers more than 10 million acres in Texas and lies beneath or near the partnership’s energy assets in the region.
“This agreement represents another significant initiative in our ongoing strategy to strengthen Enterprise’s position in the very promising Eagle Ford Shale, which has shown early success,” said Michael A. Creel, Enterprise president and chief executive officer. “We are very pleased to team up with one of the largest and most active producers in this emerging play. Our integrated network of energy infrastructure in the region is strategically positioned and well-suited to accommodate the Eagle Ford Shale’s extremely NGL-rich gas and will serve as a platform for additional growth opportunities, as well as incremental investments to expand our system as activity in this emerging play increases.”
Creel added that the proximity of Enterprise’s infrastructure to the heart of the Eagle Ford Shale will require only modest capital expenditures in order for the partnership to begin providing the transportation and processing services required under the agreement.
The completion of expansion projects at two of the partnership’s seven South Texas processing plants during the first quarter of this year increased total processing capacity of the facilities to more than 1.5 billion cubic feet per day. Along with its processing facilities, Enterprise’s South Texas assets include more than 8,000 miles of natural gas gathering and transportation pipelines that provide access to numerous intrastate and interstate systems, as well as end user markets.
In addition, Enterprise’s NGL gathering, fractionation, storage and transportation system in the region, serves as an important link in its energy value chain, which includes access to more than 15,000 miles of pipelines that deliver feedstocks to the largest concentration of refineries and petrochemical plants in the nation. These facilities represent approximately 97 percent of U.S. ethylene capacity and account for about 90 percent of motor gasoline refining capacity east of the Rockies. The enhanced flexibility of the Enterprise system will offer producers improved access to the highest value markets, helping them to maximize the value of their production.
Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and is a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil and petrochemicals. Enterprise transports natural gas, NGLs, crude oil and petrochemicals through approximately 36,000 miles of onshore and offshore pipelines. Services include natural gas transportation, gathering, processing and storage; NGL fractionation (or separation), transportation, storage, and import and export terminaling; crude oil transportation and offshore production platform; and petrochemical transportation and storage services. For more information, visit Enterprise on the web at www.epplp.com. Enterprise Products Partners L.P. is managed by its general partner, Enterprise Products GP LLC, which is wholly owned by Enterprise GP Holdings L.P. (NYSE:EPE). For more information on Enterprise GP Holdings L.P., visit www.enterprisegp.com.
This news release includes forward-looking statements. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties. These risks and uncertainties include, among other things, weather-related events, insufficient cash from operations, market conditions, governmental regulations and factors discussed in Enterprise Products Partners L.P.'s filings with the Securities and Exchange Commission. If any of these risks or uncertainties materializes, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those expected. The partnership disclaims any intention or obligation to update publicly or reverse such statements, whether as a result of new information, future events or otherwise.
