EPD Midland to ECHO proposed Pipeline Expansion
Oct 9th, 19
Expected to be in service by mid 2021; EPD's pipeline expansion proposed route is getting ready for expected increases in Oil & Gas production in the area. It's always exciting to see progress and new technologies in the Industry.
"crude and NGL output from the Permian and Eagle Ford are projected to grow by 5 million bpd by 2025."
"expected 50-percent increase in natural gas liquids (NGL) production from the Permian by 2025,"
And anyone concerned with environmental impact..has got to love this statement.
“The route would avoid the Edwards Aquifer, including its recharge and contribution zones,”
Read more of this great article by Matthew Veazey by clicking on the title link above "EPD Midland to ECHO proposed Pipeline Expansion"
Texas Pipeline Expansion Would Avoid Aquifer
by Matthew V. Veazey
Rigzone Staff
Monday, October 07, 2019
Enterprise Products Partners L.P. (EPD) reported Friday that
it will expand its Midland to ECHO crude oil pipeline system. The firm stated
the project will link its 6 million-barrel Midland, Texas, storage facility to
its ECHO Terminal in Houston through its Eagle Ford system in South Texas.
EPD noted that its wholly owned affiliate, M2E4 LLC, has
secured long-term agreements supporting the new pipeline construction.
“The proposed route for this pipeline would originate from
our Midland terminal and tie into our Eagle Ford system in South Texas,” A.J.
“Jim” Teague, CEO of Enterprise’s general partner, said in a written statement.
Teague added the new pipeline would bypass a major Texas
groundwater source.
“The route would avoid the Edwards Aquifer, including its
recharge and contribution zones,” he said.
According to EPD, the pipeline – set to begin service in the
first half of 2021 – will boast an initial capacity of 450,000 barrels per day
(bpd) but can be expanded to 540,000 bpd. The company added that its Houston
crude oil distribution system includes more than 45 million barrels of storage
and roughly 4 million bpd of export capacity via EPD’s marine terminal network.
Also, EPD noted the system links to approximately 4.5 million bpd of refining
capacity in the Houston, Texas City and Beaumont/Port Arthur areas.
Besides providing new Permian crude takeaway capacity, the
pipeline will help EPD to optimize its entire four-pipeline Midland to ECHO
system, the company stated. It noted that it expects to achieve $60 million in
annualized cost savings primarily by significantly reducing the use of costly
drag-reducing agents and managing pump operations.
Citing an expected 50-percent increase in natural gas
liquids (NGL) production from the Permian by 2025, EPD also stated the new
pipeline will enable it to revert its Seminole Red pipeline back to NGL service
during the second half of 2021. Earlier this year, in response to strong demand
for crude oil capacity from Midland to the Houston market, EPD converted
Seminole from mixed NGL to crude oil service, the firm explained. The company
added that it estimates it can make the switch in less than 60 days and will
retail the capability to convert the pipeline back to crude service if needed.
EPD contends the project will also allow its customers with
crude oil and condensate production in both the Permian and Eagle Ford to
maximize the value of their contracted pipeline capacity by strategically
sourcing production from either play or both.
“Our system allows us to provide producers in the Permian
Basin and Eagle Ford shale with segregated storage, transportation,
distribution and marine terminal services,” stated Teague. “This integrated
model supports customers’ needs for flow assurance and market choices, whether
the markets are domestic of international. It also enhances the value of
production destined for international markets by assuring product segregation,
quality and consistency based on the customer’s production.”
Teague also commented that the project will give EPD the
flexibility to respond to crude oil and NGL pipeline demand fluctuations in the
long term, adding that crude and NGL output from the Permian and Eagle Ford are
projected to grow by 5 million bpd by 2025.
“The economic returns for this expansion are also supported
by our opportunity to reduce costs,” said Teague. “In the aggregate, our total
crude oil pipeline capacity from the Permian to ECHO will be able to swing from
a low of 1.4 million bpd to 1.8 million bpd, depending on market demand.”
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