Enterprise Announces Shell Affiliate Earns Final Installment of Special Units.

Business/Energy Editors

HOUSTON--(BUSINESS WIRE)--Aug. 6, 2001

Enterprise Products Partners L.P. (NYSE:EPD) announced that Shell US Gas & Power LLC, an affiliate of Shell Oil Company, has earned its final installment of three million convertible, Special Contingency Units through the delivery of certain quantities of natural gas to Enterprise for processing during 2001. Shell had the ability to earn these units under the terms of the purchase agreement whereby Enterprise acquired Tejas Natural Gas Liquids, LLC from Shell in September 1999.

These three million Special Contingency Units, which were issued effective Aug. 2, 2001, do not participate in cash distributions until their conversion into Common Units on Aug. 1, 2003. Each Special Contingency Unit converts into one Common Unit.

"We are pleased to issue the final installment of Special Units to Shell. Since our acquisition of Tejas NGL, their production of NGL-rich, natural gas from deepwater developments has greatly exceeded our expectations," stated O.S. "Dub" Andras, president and chief executive officer of Enterprise.

"Because of this performance and expected volume growth from other Shell developments that are scheduled to begin production over the next two to three years, we are currently evaluating expansions of certain natural gas pipelines and processing plants. The issuance of these units, which do not receive cash distributions until 2003, will increase our equity by more than $110 million and provide us more flexibility in financing our growth," said Andras.

Enterprise Products Partners L.P. is the second largest publicly traded, midstream energy partnership with an enterprise value of approximately $4.4 billion. Enterprise is a leading provider of midstream energy services to producers and consumers of natural gas and natural gas liquids ("NGLs"). The Company's services include natural gas transportation, processing and storage and NGL fractionation (or separation), transportation, storage and import/export terminalling. The Company's assets are geographically focused on the United States' Gulf Coast, which accounts for approximately 55 percent of both domestic natural gas and NGL production and 75 percent of domestic NGL demand.

This press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 based on the beliefs of the company, as well as assumptions made by, and information currently available to, management. Although Enterprise believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.