PAA, EPP form Eagle Ford shale crude pipeline joint venture

Plains All American Pipeline LP and Enterprise Products Partners LP have formed a 50-50 crude oil pipeline joint venture in South Texas, consolidating portions of previously announced pipeline projects servicing the Eagle Ford shale in South Texas. Long-term shipper commitments totaling 210,000 b/d underpin the venture.

The JV will include a 140-mile crude oil and condensate line extending from Gardendale, LaSalle County, Tex., to Three Rivers, Live Oak County, Tex., and continuing to Corpus Christi, and a 35-mile pipeline segment from Three Rivers, Tex., to Enterprise's Lyssy station in Wilson County, Tex. The system, currently under construction, will have 350,000-b/d capacity and will include a marine terminal facility at Corpus Christi and 1.8-million bbl of operational storage across the system.

At Lyssy, the JV pipeline will interconnect with EPP's existing South Texas Crude Oil Pipeline, transporting crude to Sealy, Tex., for delivery to Houston-area refineries. EPP began accepting deliveries for and commissioning the first stage of this pipeline in June (OGJ Online, June 8, 2012).

PAA expects portions of the joint-venture system to begin service in this year’s fourth quarter, with the balance of the system placed into service first-half 2013. The system will be an intrastate common carrier pipeline with a posted initial base tariff rate of $1.25/bbl from Gardendale to all destinations.

PAA will operate the JV’s assets, which will not include either its Gardendale Gathering System or EPP's South Texas Crude Oil Pipeline.

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