Friday, October 7, 2011

ETP sues Enterprise, Enbridge over pipeline joint venture

DALLAS, Texas - Dallas-based Energy Transfer Partners L.P. is accusing Houston-based Enterprise Products Partners L.P. of wrongly backing out of a joint pipeline venture while pursuing a similar project with a third party.

Energy Transfer (NYSE: ETP) filed the lawsuit against Enterprise (NYSE: EDP) and Enbridge Inc. (NYSE: ENB), on Sept. 30 in State District Court in Dallas.

In the lawsuit, ETP said it formed a joint venture in April with Enterprise called Double E Crude Pipeline LLC to build an oil pipeline from Cushing, Okla., to the Gulf Coast.

ETP said Enterprise later claimed that the pipeline was not economically viable and broke the terms of the joint venture by sending out a news release without ETP's consent saying the Double E joint venture was terminated.

On Sept. 29, Enterprise announced a deal with Enbridge to build a crude oil pipeline, called the Wrangler Pipeline, from Cushing to the Gulf Coast.

ETP claims in the lawsuit that Enbridge and Enterprise discussed the new pipeline before Enterprise terminated its joint venture with ETP.

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