Enterprise Products Partners LP said it has struck long-term agreements with Anadarko Petroleum Corp. to provide a package of gas transportation and processing, as well as natural gas liquids (NGL) fractionation and transportation services, that will aid Anadarko's growing liquids-rich gas production in the Eagle Ford Shale of South Texas.
As part of the arrangements, the partnership will construct a 17-mile, 20-inch diameter gathering pipeline originating at Anadarko's central production facilities in Dimmit County, TX, and interconnecting with Enterprise's existing South Texas pipeline system. The new gathering line is expected to be in service in late October.
"In meeting Anadarko's needs, we are continuing our plan of combining the complementary advantages of our large network of existing South Texas assets with new construction to create an integrated solution that provides our customers with access to attractive natural gas and NGL markets to maximize the value of their Eagle Ford Shale production," said Jim Teague, Enterprise chief commercial officer.
The services provided to Anadarko under these new six-year agreements include firm gas transportation and processing services utilizing Enterprise's South Texas midstream infrastructure. NGLs recovered from Anadarko's gas 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 Bcf/d. An additional 600 MMcf/d is expected to be available in mid-2012 with the completion of a recently announced cryogenic gas processing plant in Lavaca County, TX.
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, Enterprise said. Total current production from the play is estimated at 300 MMcf/d of gas and 40,000 b/d of crude oil and condensate.
Enterprise's NGL activity has been focused on the Eagle Ford play as that is the region where the company has existing assets on the ground. Earlier this year executives described a "holistic" approach to NGLs focusing on the Eagle Ford. (see Daily GPI, June 30; April 28). More recently, Enterprise has discussed an idea for moving ethane out of the Marcellus Shale (see Daily GPI, Sept. 20).
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