Enterprise Products Partners is considering repurposing a portion of its 1,373-mile Seminole pipeline, which currently transports natural gas liquids (NGL) from the Hobbs hub and the Permian Basin to markets in south Texas, including the Enterprise NGL fractionation facility in Mont Belvieu, TX.
“We are very excited about what we are hearing and seeing from the Wolfcamp and Cline shale…and we have some pipelines that go through there, one of which is the Seminole pipeline, which has two pipes going through there on the NGL side, and we are actively looking at repurposing one of those NGL pipes as we bring a new Texas express pipeline on,” said Bill Ordemann, group senior vice president for Enterprise.
“We will be able to shift some of that NGL capacity up to that and may be able to free up one of those Seminole lines to bring crude from that area and take it down to the Gulf Coast,” Ordemann said during the company’s investor day meetings in Houston Wednesday. “We are in active discussions with a number of the producers out there right now to provide more services.”
Enterprise, which also has a natural gas line running through the area, “wouldn’t mind building some processing and take some NGLs out of there as well,” Ordemann said. “So we are looking at kind of some packaged solutions for the producers in the Cline shale.”
The primary source of throughput for Seminole currently is volumes originating from the Mid-America Pipeline system. Enterprise owns interests in 16,648 miles of NGL pipelines, 156 million barrels of working NGL capacity and related storage and import and export facilities.
In February, Centurion Pipeline LP said it would reactivate and expand an existing pipeline system overlying the Cline, citing growing producer interest in the oil play (see Shale Daily, Feb. 26). The Cline Shale Pipeline System, which would be capable of transporting crude oil from Irion, Tom Green, Sterling, Coke and Mitchell counties in West Texas to Centurion’s terminal in Colorado City, TX, is expected to be in service in July 2014.
Producers active in the Cline Shale, which underlies the Wolfcamp Shale, include Devon Energy Corp. and Apache Corp.
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