Enterprise Products Partners LP (EPP) has cancelled its 450,000-b/d Midland-to-Enterprise Crude Houston (ECHO) 4 crude oil pipeline project (M2E4). The company amended long-term agreements with customers to reduce the volume of near-term shipping commitments in exchange for extending the term of the agreements, allowing cancellation of the pipeline.
M2E4’s cancellation will reduce EPP’s aggregate growth capital expenditures for 2020, 2021, and 2022 by a combined $800 million. Based on currently sanctioned projects, the company expects growth capital expenditures, net of contributions from joint-venture partners, for 2020, 2021, and 2022 to be $2.8 billion, $1.6 billion, and $900 million, respectively.
These estimates do not include capital investments associated with EPP’s proposed deep water offshore crude oil terminal (SPOT), which remains subject to government approvals. The company does not expect to receive approvals for SPOT in 2020.