Anadarko taps Enterprise for Eagle Ford Shale natural gas midstream services

Source: Enterprise Products Partners

Enterprise Products Partners (NYSE:EPD) has entered into long-term agreements with Anadarko Petroleum Corporation (NYSE:APC) to provide a comprehensive package of natural gas transportation and processing, and natural gas liquids (NGL) fractionation and transportation services that will facilitate Anadarko's growing liquids-rich natural gas production in the prolific Eagle Ford Shale in South Texas

As part of the arrangements, the partnership will construct a new 17-mile, 20-inch diameter natural gas gathering pipeline originating at Anadarko's central production facilities located in Dimmit County, Texas, and interconnecting with Enterprise's existing South Texas pipeline system. The new pipeline is expected to be in service in late-October 2010. 

The services provided to Anadarko under these new six-year agreements include firm natural gas transportation and processing services utilizing Enterprise's growing South Texas midstream infrastructure. In addition to natural gas transportation and processing services, the NGLs recovered from Anadarko's natural gas volumes will be transported and fractionated in Enterprise's integrated NGL pipeline and fractionation assets throughout Texas. 

Current processing capacity at Enterprise's existing facilities in South Texas is 1.5 billion cubic feet per day. An additional 600 million cubic feet per day ("MMcf/d") is expected to be available in mid-2012 with the completion of a recently announced cryogenic gas processing plant in Lavaca County, Texas. 

Activity in the Eagle Ford Shale continues to increase as approximately 100 rigs working in the play have drilled more than 175 wells to date with approximately 150 additional wells in various stages of drilling and completion. Total current production from the play is estimated at approximately 300 MMcf/d of natural gas and 40,000 barrels per day of crude oil and condensate.

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