Enterprise, Anadarko expand Eagle Ford shale cooperation

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, Mar. 29 -- Enterprise Products Partners LP has signed a 6-year agreement to provide Anadarko Petroleum Corp. with midstream services in the Eagle Ford shale play of South Texas. The latest agreement comes in addition to a similar arrangement the two companies executed in September 2010. Under the terms of the new contract, Enterprise will provide gas processing and NGL fractionation and transportation services to accommodate Anadarko’s Eagle Ford production.

Enterprise plans to construct a new 46½-mile, 24-in. OD pipeline through LaSalle County, Tex., to further expand its rich natural gas gathering system. This infrastructure, along with portions of the partnership’s previously announced pipeline expansions, will transport additional volumes under the new contract. Construction of a 17-mile, 20-in. OD gas gathering pipeline was part of the September agreement between the two companies (OGJ Online, Sept. 22, 2010).

Enterprise currently processes 1.5 bcfd at its existing South Texas facilities. With the completion of a cryogenic processing plant in Lavaca County, Tex., expected to begin service mid-2012, the company will add 600 MMcfd of incremental capacity.

Activity in the Eagle Ford Shale continues to increase. About 150 rigs are working in the play and more than 500 wells have been drilled, with roughly 300 more in various stages of completion, according to Enterprise. Current production from the play is estimated at 750 MMcfd of gas and 80,000 b/d of oil and condensate.

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

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