Full use seen of expanded Rockies NGL system

By OGJ editors
HOUSTON, Aug. 17 -- Mid-America Pipeline Co. LLC expects full utilization of the current 225,000-b/d capacity of its Rocky Mountain NGL pipeline system and 50,000 b/d of expansion capacity based on an open season tariff accepted by the Federal Energy Regulatory Commission and effective on Aug. 6.

The Enterprise Products Partners LP subsidiary has entered long-term agreements with all but one of the current shippers on the NGL system.

The shippers have agreed to transport all of their current and future NGL production from the Rocky Mountain region to the Hobbs, NM, fractionator or to Mont Belvieu, Tex., via the Seminole pipeline system for 10-20 years.

Enterprise said construction has begun to expand the Rocky Mountain system, which carries mixed NGLs from the Rocky Mountain Overthrust Belt and San Juan basin to Hobbs. The project will add 30,000 b/d of capacity to the system by yearend and a further 20,000 b/d of capacity via horsepower upgrades at new pump stations by mid-2007.

To accommodate increased NGL production in the Rockies, Enterprise in April completed the addition of 15,000 b/d of fractionation capacity at an existing facility at Mont Belvieu.

It plans by third quarter 2007 to complete construction of a 75,000 b/d fractionator and related storage facilities at the interconnection of the Mid-America and Seminole systems at Hobbs.

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