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Enterprise, Energy Transfer to Restart Old Ocean Natural Gas Pipe to Move Permian Volumes South

Enterprise Products Partners LP and Energy Transfer Partners LP (ETP) on Friday said they are forming a joint venture to resume service on the Old Ocean natural gas pipeline in North Texas, idle for about six years, to carry more supply to the Gulf Coast from the Permian Basin.

The  24-inch diameter system, which originates at Maypearl, TX, in Ellis County south of Fort Worth, extends south about 240 miles to Sweeny, in Brazoria County east of Houston. The system initially was designed to carry Barnett Shale gas volumes.

The restart is designed to facilitate more gas supply to be moved from the Permian’s twin sub-basins, the Delaware and the Midland. The pipeline is expected to resume service by mid-year, with ETP as operator, the partners said.

“Bringing the Old Ocean pipeline back into service will help meet the immediate demand for takeaway capacity from the growing Delaware Basin and Midland Basin,” said Enterprise’s Jim Teague, who is CEO of the general partner. “Old Ocean offers an efficient, timely, cost-effective and integrated solution that provides producers with flow assurance and access to the Gulf Coast.”

Both parties also are in the process of expanding their jointly owned North Texas Pipeline, a 36-inch diameter system, to provide more capacity from West Texas for deliveries into the Old Ocean system. The North Texas system is about 395 miles long, running from the Waha Hub in West Texas to the Carthage Hub in East Texas.

The North Texas Pipeline expansion project is expected to be complete by late this year.

“We are excited about this opportunity to work with Enterprise to provide much needed transportation capacity out of one of the most prolific and active basins in the world,” said ETP’s Mackie McCrea, group COO of the owner of the general partner.

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