HOUSTON, Texas - Enterprise Products Partners L.P. on Nov. 11 announced plans to construct a crude oil storage facility and associated pipelines to provide refiners in the Houston area with access to growing production from the Eagle Ford Shale play in South Texas.
A 150-acre tract in an industrial area of southeast Houston has been purchased as the site for the new Enterprise Crude Houston terminal.
Crude oil will be delivered to the Enterprise Crude Houston facility through the partnership’s Rancho Pipeline, located approximately three miles northwest of the new terminal, and two 24-inch pipelines Enterprise plans to construct.
Strategically located close to two large-diameter crude oil distribution pipelines, the Enterprise Crude Houston terminal would provide access to the major refiners in Texas City, as well as other installations in Pasadena/Deer Park, Baytown and along the Houston Ship Channel via the Seaway Pipeline.
The new crude oil storage facility and related infrastructure is scheduled to begin service in mid-2012.
“This project significantly enhances the value of Enterprise’s integrated midstream network in the Eagle Ford Shale by linking our recently announced 140-mile crude oil pipeline with the Houston-area refining complex, which features more than two million barrels per day of demand,” said A.J. “Jim” Teague, Enterprise executive vice president and chief operating officer. “By offering access to the largest concentration of refineries in the world and the storage and trading hub at Cushing, Okla., Enterprise will be able to provide Eagle Ford Shale producers with flexible options for maximizing the value of their production.”
Mark Hurley, senior vice president, Crude Oil and Offshore for Enterprise added, “The terminal and associated pipelines will be especially important to refiners that are depending on reliable, local supplies to support expansion projects. Domestic crude oil from the Eagle Ford Shale also reduces the country’s dependence on foreign sources for producing gasoline and other refined products.”
Initial storage capacity at the Crude Houston terminal will be dedicated to the operation of the new pipelines. However, the partnership envisions further expansion of the facility to accommodate production volumes from offshore and Canadian sources in addition to the Eagle Ford Shale.