Enterprise Products Partners LP has found additional backers to support its Panola Pipeline.
Along with Anadarko Petroleum Corp., DCP Midstream Partners LP and MarkWest Energy Partners LP, Enterprise formed a joint venture that will give 45 percent ownership interest in Panola Pipeline Co. LLC, according to a Feb. 24 company statement.
“Developing win-win relationships with strategic partners that bring volume commitments or other contributions to the joint venture is a cornerstone of Enterprise’s growth,” said Michael A. Creel, CEO of Enterprise’s general partner. “We are pleased to form this joint venture that benefits and aligns our partners from the wellhead through the fractionator.”
The 45 percent interest will be split evenly among Anadarko’s affiliate, WGR Asset Holding Co. LLC, DCP Midstream Partners and MarkWest. Enterprise will continue to serve as operator of the pipeline and own the remaining 55 percent interest.
“With Anadarko’s valuable position in the liquids-rich East Texas area, this joint venture provided an excellent opportunity to expand NGL takeaway incrementally to help facilitate future activity and growth,” said Jacqui Dimpel, Anadarko vice president of midstream.
The Panola Pipeline transports natural gas liquids (NGL), originating in Carthage, Texas, and extending 181 miles to Mont Belvieu, Texas.
“DCP Midstream Partners is excited about our joint venture with these strong partners in the Panola Pipeline system that will support continued growth in East Texas and benefit DPM’s extensive gathering and processing infrastructure in this area,” said Wouter van Kempen, chairman and CEO of DCP Midstream.
Following a successful open season, Enterprise recently announced plans to install 60 miles of new pipeline, as well as pumps and other associated equipment as part of an expansion project designed to increase capacity by 50,000 barrels per day (bpd). The incremental capacity is expected to be available in the first quarter of 2016.
“The expansion of the Panola Pipeline system will provide additional capacity for producers’ growing NGL production and enable us to continue growing our midstream presence in Panola County, Texas,” said Frank Semple, chairman, president and CEO of MarkWest. “We are pleased to be partnering with Enterprise, WGR and DPM to construct this new joint venture project.”