HOUSTON--(BUSINESS WIRE)--
Enterprise Products Partners L.P. (NYSE: EPD) today announced it has executed additional long-term contracts to provide transportation services on the Midland to ECHO 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 (“BPD”), which represents approximately 83 percent of the segment’s ultimate committed capacity of 405,000 BPD. Total capacity for the pipeline segment will be 450,000 BPD, which will include 45,000 BPD of “walk-up” capacity.
“We are very pleased to announce these additional commitments,” said A.J. “Jim” Teague, chief executive officer 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 BPD per day 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 the fourth quarter of 2017. The pipeline is scheduled to be in full service, including the capability to batch four grades of crude oil, with 450,000 BPD of capacity by the second quarter of 2018. Committed volumes ramp up through 2021 with 90 percent of the total committed volumes scheduled to ramp up by the end of 2019.
Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. Our services include: natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage, and export and import terminals; crude oil gathering, transportation, storage, export and terminals; petrochemical and refined products transportation, storage and terminals; and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems. The partnership’s assets include approximately 50,000 miles of pipelines; 260 million barrels of storage capacity for NGLs, crude oil, refined products and petrochemicals; and 14 billion cubic feet of natural gas storage capacity.
This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission. All statements, other than statements of historical fact, included herein that address activities, events, developments or transactions that Enterprise and its general partner expect, believe or anticipate will or may occur in the future are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from expectations, including required approvals by regulatory agencies, the possibility that the anticipated benefits from such activities, events, developments or transactions cannot be fully realized, the possibility that costs or difficulties related thereto will be greater than expected, the impact of competition, and other risk factors included in Enterprise’s reports filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. Except as required by law, Enterprise does not intend to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
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