Home / News/Oil and Gas/Enterprise Products Proposes Expanding Texas NGL Pipeline
SOURCE: Dow Jones Newswires | 19 Oct 2011

HOUSTON -(Dow Jones)- Enterprise Products Partners LP opened a bidding season for shippers Wednesday on a proposed expansion of its Skelly-Belvieu natural gas liquids pipline.

The project would add 17,000 barrels a day of capacity to the 570-mile pipeline, which stretches from Carson County, Texas, to Enterprise's NGL processing hub in Mount Belvieu, outside Houston. The pipeline is a joint venture of Enterprise and ConocoPhillips.

A domestic oil boom has led to a parallel rise in the supply of NGLs, the gas that is often mixed in with oil and can be separated into ethane, propane and other products. The increase in NGLs has especially benefited the U.S. petrochemical industry, which uses ethane as a raw material.

Depending on how much interest is shown in the proposed expansion, the added capacity could be available by fourth quarter 2012, Enterprise said.

Enterprise is in the midst of an open commitment period for a proposed 125,000 barrel-a-day pipeline that would transport ethane from gas and oil fields in Pennsylvania, Ohio and West Virginia to the U.S. Gulf Coast.

By Ben Lefebvre, Dow Jones Newswires

10-19-11 1259ET

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