Enterprise Products Partners L.P. has announced that its operating subsidiaries have entered into long-term agreements with EOG Resources, Inc. to provide a comprehensive package of midstream energy services that will service EOG's growing crude oil and associated liquids-rich natural gas production in the prolific Eagle Ford Shale in South Texas.
"The South Texas Eagle Ford has the potential to be one of the largest crude oil discoveries in the United States including the Deep Water Gulf of Mexico, in the last 40 years and we believe we have captured 900 million barrels of oil equivalent, net on our 505,000 net acreage position in the play." said Mark G. Papa, EOG's Chairman and Chief Executive Officer.
Enterprise will construct a 140 mile pipeline originating in northwestern Karnes County to transport EOG's crude oil production from the Eagle Ford Shale. The pipeline will extend to its existing crude oil system in Austin County where it will connect to the partnership's Sealy Station. The pipeline has a capacity of 350,000 bpd, and is large enough to provide capacity for other producers in the Eagle Ford Shale.
The pipeline, which is anchored by a 10 year, firm transportation agreement with EOG, offers the flexibility to access the Houston refinery market or the Enterprise operated Seaway Pipeline system that provides a direct link to Cushing, Oklahoma, a major domestic crude oil storage and trading hub.
Enterprise will also provide EOG with natural gas processing services at the partnership's planned cryogenic gas processing facility. With an initial capacity of 600 million ft3/d, the new processing plant is projected to be in service in mid 2012. The NGLs recovered from EOG's natural gas volumes at the new plant will be transported through Enterprise's recently announced 127 mile, 12 in. diameter NGL pipeline to its Mont Belvieu complex where Enterprise will construct a fifth NGL fractionator.
Activity in the Eagle Ford Shale continues to exceed industry expectations as more than 90 rigs working in the play have drilled more than 175 wells to date. Current production from the play is estimated at approximately 300 million ft3/d of natural gas and 40,000 bpd of crude oil and condensate.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/03092010/enterprise_to_build_eagle_ford_shale_pipeline/