Press release from Business Wire
Enterprise Announces Plans to Expand Crude Oil Storage and Distribution Infrastructure Serving Southeast Texas
Thursday, May 02, 2013
Enterprise Announces Plans to Expand Crude Oil Storage and Distribution Infrastructure Serving Southeast Texas15:41 EDT Thursday, May 02, 2013
HOUSTON (Business Wire) -- Enterprise Products Partners L.P. (“Enterprise” NYSE:EPD) today announced plans to significantly expand its crude oil storage and distribution infrastructure serving the Southeast Texas refinery market. The expansion will be completed in phases with final completion expected in the fourth quarter of 2014. Upon completion, Enterprise will be uniquely positioned to provide refiners with access to an integrated system offering supply diversification, significant storage capacity and a high-capacity distribution system that will be pipeline-connected to Southeast Texas refineries having an aggregate capacity of approximately 3.6 million barrels per day. In addition, Enterprise's Crude Oil Houston (“ECHO”) storage facility, which will be expanded to over 6 million barrels of capacity, will have access to Enterprise's marine terminal at Morgan's Point on the Houston Ship Channel.
Historically, these refineries have been primarily supplied by waterborne imports of crude oil. With the success of North American producers, crude oil from the Eagle Ford, Permian, Midcontinent, Bakken and Canada are flowing into Southeast Texas and displacing the waterborne crude oil imports. As production from these regions continues to grow, there will be a significant increase in crude oil bound for the Gulf Coast market, which currently lacks sufficient storage and has a fractured and constrained distribution system to handle these varying grades of crude oil.
This expansion includes an additional 4 million barrels of new crude oil storage capacity at Enterprise's ECHO and Bertron facilities and approximately 55 miles of 24-inch and 36-inch pipeline to directly connect ECHO with the major refineries in the Southeast Texas market.
“Refiners in the Southeast Texas market are responding to the dynamics and opportunities created by the rapidly changing source and grades of crude oil supplies,” said A.J. “Jim” Teague, Chief Operating Officer of Enterprise. “We have received strong interest from our customers to expedite the development of additional storage capacity and distribution capability to facilitate their consumption of the different grades of crude oil and to provide flow and quality assurance to their refineries. We believe ECHO will become the critical link between the new pipelines bringing supplies from the producing basins and the end use refining market in Southeast Texas as it is located at the crossroads of crude oil moving from north to south and from west to east.”
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 import and export terminals; crude oil and refined products transportation, storage and terminals; offshore production platforms; petrochemical transportation and services; and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems and in the Gulf of Mexico. The partnership's assets include approximately 50,000 miles of onshore and offshore pipelines; 200 million barrels of storage capacity for NGLs, petrochemicals, refined products and crude oil; and 14 billion cubic feet of natural gas storage capacity. For additional information, visit www.enterpriseproducts.com.
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 expects, believes or anticipates will or may occur in the future, including anticipated benefits and other aspects of such activities, events, developments or transactions, are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, 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 the reports filed with the Securities and Exchange Commission by Enterprise. 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.
Enterprise Products Partners L.P.
Randy Burkhalter, (713) 381-6812 or (866) 230-0745
Rick Rainey, (713) 381-3635