Enterprise to build Houston-area crude terminal

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, Nov. 11 -- Enterprise Products Partners LP plans to construct a crude oil storage facility, the Enterprise Crude Houston terminal, and associated pipelines to provide refiners in the Houston area with access to growing production from the Eagle Ford shale play in South Texas. Enterprise’s Rancho Pipeline, about 3 miles northwest of the new terminal, would deliver crude to it via two planned 24-in. OD pipelines.

Built on a 150-acre tract in an industrial area of southeast Houston, the terminal will be close to two large-diameter crude oil distribution pipelines, providing access to major refiners in Texas City, as well as other installations in Pasadena-Deer Park, Baytown, and along the Houston Ship Channel via the Seaway Pipeline. Enterprise expects the new crude oil storage facility and related infrastructure to begin service mid-2012, drawing supplies from the 140-mile, 350,000 b/d Eagle Ford crude oil pipeline it announced in September and expects to put into service first-quarter 2012 (OGJ Online, Sept. 13, 2010).

Enterprise will dedicate initial storage capacity at the Crude Houston to operation of the new pipelines, but envisions further expansion of the facility to accommodate production volumes from offshore and Canadian sources in addition to the Eagle Ford shale.

Enterprise has Eagle Ford crude delivery agreements in place with EOG Resources Inc., Pioneer Natural Resources USA Inc., Reliance Eagleford Upstream Holding LP, and Newpek LLC.

Contact Christopher E. Smith at chriss@ogjonline.com.

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