HOUSTON - Enterprise Products Partners L.P. (NYSE: EPD) and Duncan Energy Partners L.P. (NYSE: DEP) on May 12 announced an expansion initiative at their jointly-owned Shoup and Armstrong facilities in South Texas, which provide natural gas processing and natural gas liquids (NGLs) fractionation services.
The upgrades are part of a comprehensive plan to expand the partnerships' midstream infrastructure in South Texas to handle increasing natural gas production from the growing Eagle Ford Shale play.
"This project further demonstrates the value of our existing assets in South Texas, which serve as the foundation for our strategy of focusing on the efficient and creative use of capital to generate attractive returns from increasing activity and higher demand for midstream services in the Eagle Ford Shale," said Michael A. Creel, Enterprise president and chief executive officer. "These expansions will not only give us the flexibility to accommodate more volumes, but should also position us to capture additional value from the various physical qualities of the natural gas, particularly the high NGL content, that are characteristic of Eagle Ford Shale production."
At the Shoup facility, located in Nueces County, Texas, the focus is on modifying existing fractionation equipment, which would increase its capacity to 77,000 b/d. The work is expected to be completed in the second quarter of 2010.
Incremental volumes of NGLs to fill the additional capacity are expected to be supplied by six existing Enterprise natural gas plants currently feeding the Shoup facility. Production from these plants is expected to increase significantly over the next six months as the quantity and quality of the gas supplies increase.
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