Phillips 66 is planning to build a 100,000 b/d fractionator in Old Ocean, TX. The plant will alleviate congestion in Mont Belvieu and add an outlet for Y-grade NGLs from the Eagle Ford. The plant will be located near the company’s Sweeney Refinery and will have access to Gulf Coast petrochemical customers and the Month Belvieu distribution network. [Read more…]
In response to growing production of light crudes and NGLs, Enterprise Product Partners (EPD) is proposing a diluent-quality natural gasoline pipeline from Mont Belvieu to delivery points in and around Chicago. [Read more…]
DCP’s Sand Hills Pipeline has started servicing the Eagle Ford Shale. The company is opening the 720 mile pipeline that runs from the Permian Basin to Mont Belvieu (East of Houston) in segments. The next segment connects directly to Mont Belvieu and will be open by the end of 2012. Construction tying in the Permian Basin will be finished mid-2013.
“When finished, Sand Hills Pipeline will be a major link between the liquids-rich Eagle Ford and Permian producing regions and growing Gulf Coast markets,” said Tom O’Connor, chairman and chief executive officer of DCP Midstream. “With Sand Hills, we can offer an integrated NGL takeaway solution to producers, who will enjoy reliable one-stop service. Sand Hills adds to our well positioned assets in the Permian and Eagle Ford producing regions.”
When finished, the Sand Hills Pipeline will be 720 miles of 20-inch pipe with capacity of 200,000 barrels per day of NGLs and will have the ability to expand to 350,000 b/d if needed. DCP is projecting it will spend $1 billion on the pipeline and offers three strategic reasons for constructing the pipeline:
- Provides critical capacity and NGL transport from South Texas and the Permian Basin
- Capitalizes on increased Eagle Ford growth
- Improves reliability of the overall NGL network
After spending much of the week at Bentek’s Benposium, it is clear the Eagle Ford’s position in the Gulf Coast energy complex is a long-term advantage.
“The Eagle Ford is exciting because of its location to the Gulf Coast. With rich gas in close proximity to Mont Belvieu, the Eagle Ford’s NGL net backs are among the highest in the country” – Kristen Holmquiest, NGL Analytics at Bentek [Read more…]
Enterprise Product Partners is the latest of many Eagle Ford midstream companies that are adding infrastructure to handle growing NGL production. Enterprise is already constructing its sixth fractionator at Mont Belvieu and the latest announcement comes after Dow and Shell announced plans to go forward with new petrochemical plants in the U.S.
The additions will add 150,000 b/d of incremental capacity in the fourth quarter of 2013 when total capacity will be more than 610,000 b/d at the facilities. That’s more than double the capacity of Enterprise’s plant just two years ago. The plans are supported by growing volumes of NGL production in the Eagle Ford Shale, Rocky Mountains, and West Texas. [Read more…]
Enterprise Products Partners announced plans to expand natural gas pipeline and NGL infrastructure in the Eagle Ford Shale. The developments are in response to demand from operators in the region who are experiencing strong growth. The company estimates current crude oil production is 200,000- 250,000 bbls/d and may ultimately reach 750,000-850,000 bbls/d. Plans will be in service by the first quarter of 2013 and include:
- Additional 300 mmcfd train at the Yoakum cryogenic plant in Lavaca County, TX
- Adding 62 miles of pipeline loops (24 and 30 inch) and compression to add 300 mmcfd of gathering capability
- Y-grade pipeline from Yoakum, TX to Mont Belvieu will be expanded from a planned 20 inches to 24 inches.
The 300 mmcfd train at the Yoakum Plant is in addition to the 600 mmcfd under construction. That will bring total capacity up to 900 mmcfd at the opening of this train. In total, Enterprise Products processing capacity in South Texas will jump from 1.5 bcfd to 2.4 bcfd when the Yoakum plant is fully functional. [Read more…]