Enterprise Begins Service at Meeker Natural Gas Processing Facility in Piceance Basin.Production at Enterprise-owned Independence Hub nears 600 million cubic feet per day HOUSTON -- Enterprise Products Partners L.P. (NYSE NYSE See: New York Stock Exchange :EPD EPD expected progeny difference. ) today announced that it has begun processing natural gas at the recently completed first phase of the partnership's Meeker processing complex, located in Colorado's Piceance Basin. The plant has a capacity of 750 million cubic feet per day (MMcf/d) of natural gas and is capable of extracting up to 35,000 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. (BPD) of natural gas liquids (NGLs). Phase II of the complex, which is now under construction and expected to be completed in the third quarter of 2008, will double processing capacity at Meeker to 1.5 billion cubic feet per day (Bcf/d) of natural gas and 70,000 BPD of NGLs. The two phases are supported by long-term commitments from producers, including EnCana and ExxonMobil. Current inlet volumes at the plant are approximately 430 MMcf/d, which is expected to produce up to 24,000 BPD of NGLs. Natural gas volumes are expected to exceed 500 MMcf/d by the end of 2007, which will produce more than 27,700 BPD of NGLs. "The Piceance Basin represents one of the most prolific and fastest growing energy producing areas in the nation, and the completion of our Meeker facility provides the region with valuable midstream infrastructure needed to accommodate those growing volumes," said Michael A. Creel, Enterprise president and chief executive officer. "For Enterprise, Meeker provides us with yet another foothold from which to capitalize on additional opportunities in the Piceance Basin and generate incremental cash flow for our investors." The Meeker complex complements other projects recently completed as part of Enterprise's Rocky Mountain growth initiative and reinforces the partnership's integrated energy value chain philosophy. Specifically, the 50,000 BPD expansion of the Mid-America Pipeline enables the system to accommodate the increased volumes of NGLs that will be extracted at Meeker. In addition, Enterprise's Hobbs fractionator, which began service in August of 2007, offers another key hub for separating mixed NGLs produced at Meeker into purity products, such as ethane ethane (ĕth`ān), CH3CH3, gaseous hydrocarbon. It is a continuous-chain alkane. As a constituent of natural gas, it is used for fuel. It can be prepared by cracking and fractional distillation of petroleum. , propane, isobutane isobutane (ī'səby `tān): see butane. , normal butane butane (by `tān), C4H10, gaseous alkane, a hydrocarbon that is obtained from natural gas or by refining petroleum. and natural gasoline.
The Hobbs plant, which is expected to be at or near its design capacity
of 75,000 BPD by the end of October, provides customers with additional
options for accessing the most attractive markets, allowing them to
realize full value for their products.
In addition to their processing agreements with Enterprise, EnCana and other producers are also supporting the Meeker initiative through fixed-fee natural gas gathering contracts on the partnership's Piceance Creek Gathering System. The 48-mile, 36-inch diameter pipeline has a capacity of 1.6 Bcf/d and extends from a connection with EnCana's Great Divide Gathering System near Parachute, Colorado northward through the heart of the Piceance Basin to the Meeker complex. The Meeker complex also figures prominently in a 30-year midstream services agreement with a division of Exxon Mobil Corporation Exxon Mobil Corporation U.S.-based oil and gas company formed in 1999 through the merger of Exxon Corp. and Mobil Corp. It has investments and operations in petroleum and natural gas, coal, nuclear fuels, chemicals, and ores. . As part of the agreement, Enterprise will provide gathering, compression, treating and conditioning services for natural gas produced as part of ExxonMobil's Piceance Development Project, which encompasses more than 29,000 acres in Rio Blanco County, Colorado Rio Blanco County is the sixth most extensive of the 64 counties of the State of Colorado of the United States. The county population was 5,986 at U.S. Census 2000.[1] The name of the county is the Spanish language name for the White River which runs through it. . Production in the Piceance Basin, which covers more than 6,000 square miles, currently exceeds 1.15 Bcf/d from more than 5,400 natural gas wells and has been growing at an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. rate averaging about 25 percent over the past five years. Recent studies conducted by independent energy researchers estimate recoverable gas resources of approximately 42 trillion cubic feet from the Piceance Basin. Independence update Enterprise also announced today that production through the partnership's Independence Hub natural gas platform in the deepwater Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east has reached approximately 600 million cubic feet per day from 10 wells. As the initial 15 wells are brought on line, producers expect that production at the Independence Hub will be at or near its capacity of 1 billion cubic feet per day by the end of 2007. Located in 8,000 feet of water, the record-setting Independence Hub, which was conceived, designed and constructed by Enterprise, is the deepest offshore platform ever installed in the Gulf and is also the largest in terms of processing capability. The Independence Hub is owned 80 percent by Enterprise, with Helix Energy Solutions Group, Inc. owning the remaining 20 percent. Enterprise owns 100 percent of the 134-mile Independence Trail pipeline, which transports natural gas from the Hub to the partnership's West Delta 68 platform for delivery to shore via a third party pipeline. Enterprise Products Partners L.P. is one of the largest publicly traded partnerships Publicly Traded Partnership A limited partnership that also has interests traded in the equity securities market. Notes: This is also known as a master limited partnership. See also: Master Limited Partnership, Partnership, Public Company with an enterprise value of more than $19 billion, and is a leading North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil and petrochemicals. Enterprise transports natural gas, NGLs, crude oil and petrochemicals through more than 35,000 miles of onshore and offshore pipelines. Services include natural gas transportation, gathering, processing and storage; NGL NGL - A dialect of IGL. fractionation fractionation /frac·tion·a·tion/ (frak?shun-a´shun) 1. in radiology, division of the total dose of radiation into small doses administered at intervals. 2. (or separation), transportation, storage, and import and export terminaling; crude oil transportation and offshore production platform services. For more information, visit Enterprise on the web. Enterprise Products Partners L.P. is managed by its general partner, Enterprise Products GP LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , which is wholly owned by Enterprise GP Holdings L.P. (NYSE:EPE EPE equine pituitary extract. ). For more information on Enterprise GP Holdings L.P., visit www.enterprisegp.com. This news release includes forward-looking statements. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties, such as the partnership's expectations regarding its expansion programs and future operating results. These risks and uncertainties include, among other things, insufficient cash from operations, market conditions, governmental regulations and factors discussed in Enterprise Products Partners L.P.'s filings with the Securities and Exchange Commission. If any of these risks or uncertainties materializes, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those expected. The partnership disclaims any intention or obligation to update publicly or reverse such statements, whether as a result of new information, future events or otherwise. |
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