Enterprise to buy Permian carbon dioxide line

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, Mar. 1 -- Enterprise Products Partners LP purchased a 39-mile carbon dioxide pipeline from Trinity Pipeline LP that Enterprise will convert to crude oil service. The 8-in. OD pipeline, extending from Reeves County, Tex., to Lea County, NM, will be capable of shipping an estimated 54,000 b/d to the Basin Pipeline.

Converting the pipeline to oil service and linking to Basin will expand takeaway capacity in the Permian basin’s Bone Spring-Avalon play, allowing shippers access to Enterprise's network, including storage facilities at Midland, Tex., and Cushing, Okla. Enterprise will build a central delivery point and associated infrastructure for receiving truck deliveries of crude oil for loading onto the converted line. Construction of the new facilities and conversion of the pipeline to crude oil service is expected to be completed by yearend.

The Bone Spring-Avalon play is characterized by an interval of shale, sandstone, and limestone up to 2,000 ft thick. Prospective production has been identified in multiple horizons on more than 2 million acres throughout Eddy and Lea counties in New Mexico and Reeves, Loving, Ward, and Culberson counties in Texas. Enterprise estimates 120,000 b/d crude oil production and 500 MMcfd gas production as possible from the play by 2018, based on 400 wells drilled/year. There are currently 30 rigs operating in the play, Enterprise said.

Energen Resources Corp, Birmingham, Ala., expanded its Bone Spring-Avalon acreage by 17,000 net acres in January and plans to drill at least 14 wells in the play during 2011 (OGJ Online, Jan. 7, 2011).

Contact Christopher E. Smith at chriss@ogjonline.com.



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...