Enterprise Begins Service on Shin Oak NGL Pipeline

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Enterprise Products Partners LP announced Feb. 28 that its Shin Oak natural gas liquids (NGL) mainline is now in service from Orla, Texas, in Reeves County to its NGL fractionation and storage complex at the Mont Belvieu hub. The 24-in. diameter pipeline has an initial capacity of approximately 250,000 barrels per day (bpd) and provides takeaway capacity for growing NGL production from multiple basins, including the Permian, where NGL volumes are projected to nearly double within the next three years.

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Completion of the related 20-in. diameter Waha lateral is scheduled for the second quarter of 2019. Supported by long-term customer commitments, the Shin Oak project will ultimately provide up to 550,000 bpd of capacity, which is expected to be available in the fourth quarter of 2019.

“The Shin Oak Pipeline represents another important addition to our expanding network of integrated midstream assets in the Permian Basin,” said A.J. “Jim” Teague, CEO of Enterprise’s general partner. “Shin Oak provides not only a much-needed takeaway option for NGLs, but facilitates growing production of other hydrocarbons in one of the most prolific producing areas in the world, and gives producers access to the most attractive domestic and global markets.”

Once the pipeline infrastructure is fully complete, NGLs for Shin Oak will be sourced primarily from Enterprise’s Orla natural gas processing complex, which began operations in 2018, as well as dedicated acreage from the Alpine High development. A third train at Orla is on schedule to begin service in the second quarter of 2019, followed by Enterprise’s Mentone natural gas processing plant, expected to commence service in the first quarter of 2020. These facilities will give Enterprise more than 1.6 billion cubic feet per day (Bcf/d) of natural gas processing capacity and more than 250,000 bpd of NGL production capabilities in the Permian Basin.

Complementing Enterprise’s Permian Basin assets is the addition of NGL fractionation capacity at its Gulf Coast facilities. The projects are expected to increase the partnership’s system wide fractionation capacity to approximately 1.5 million bpd by the second quarter of 2020.

Enterprise Products Partners is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. The ocmpany’s assets currently include approximately 49,200 miles of pipelines; 260 million barrels of storage capacity for NGLs, crude oil, petrochemicals and refined products; and 14 billion cubic feet of natural gas storage capacity.

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