|Enterprise and Enbridge to Develop Crude Oil Pipeline from Cushing to the Gulf Coast|
HOUSTON & CALGARY, Alberta, Sep 29, 2011 (BUSINESS WIRE) --
Enterprise Products Partners L.P. (NYSE: EPD) ("Enterprise") and Enbridge Inc. (NYSE/TSX:ENB) ("Enbridge") today announced plans to design, construct and operate a new pipeline to transport crude oil from the oversupplied hub at Cushing, Oklahoma to the Texas Gulf Coast refining complex. Initially, the Wrangler Pipeline will have the capacity to transport up to 800,000 barrels per day (BPD) of crude oil and accommodate the constrained medium-to-light crude oil currently stranded at Cushing and priced at a substantial discount to the oil imports that account for most of the supply being used by Gulf Coast refiners. The pipeline will also have the capability to handle additional supplies of crude oil arriving at Cushing from other North American producers. In anticipation of future increases in crude oil volumes delivered to the Cushing area, the joint venture partners will design the pipeline to be easily expanded.
The proposed 36-inch diameter pipeline will originate at the existing Enbridge Cushing Terminal and extend approximately 500 miles (800 kilometers) southward, closely following existing pipeline corridors, to Enterprise's ECHO crude oil storage terminal in southeast Harris County, Texas, providing access to refineries in Texas City, Pasadena/Deer Park, Baytown and along the Houston Ship Channel. New storage tankage necessary for pipeline operations will be located at the ECHO site and included in the joint venture. The project will also include a new 85-mile (137-km) pipeline to the Beaumont/Port Arthur refining center.
"We are extremely pleased to partner with Enbridge on this important project and believe that our complementary skills and shared strategic vision will help ensure success, and offer the most efficient and expedient solution for meeting the industry's need for additional crude oil pipeline infrastructure," said Michael A. Creel, president and chief executive officer of Enterprise's general partner. "This pipeline will be able to transport all grades of crude oil in batched configuration to meet the diverse needs of shippers, allowing producers to maximize the value of their crude oil and provide a more reliable source of domestic supply for Gulf Coast refiners."
"The Wrangler Pipeline will offer flexible solutions to shippers seeking to move crude oil out of the Cushing hub, solving the current lack of transportation options following recent changes in supply routes in North America," said Patrick D. Daniel, president and chief executive officer, Enbridge Inc. "We're pleased that Enterprise shares our vision to design this pipeline to meet the needs over the long-term as the Cushing Hub continues to attract both light and heavy production from North American producers. Combining Enbridge's large storage position at Cushing, with Enterprise's ECHO terminal in Houston will provide tremendous connectivity for the industry."
U.S. Midcontinent crude oil supplies are growing rapidly and that trend is expected to continue as a result of the development of shale plays such as Bone Springs/Avalon, Bakken, Niobrara and Barnett. Additionally, refiners and oil producers are seeking new pipeline routes south of Cushing rather than the historical northerly supply routes out of that crude oil hub. Another important driver of this project is the demand by Gulf Coast refineries for Western Canadian crude oil supplies, which have been growing since Alberta oil first accessed the Cushing Hub over the last decade. The Wrangler Pipeline will be designed to accommodate quality-controlled batches of a variety of grades and sources of crude oil, providing options for economical, efficient and safe transportation of crude oil.
Open season to begin October 3, 2011
Also today, Enterprise and Enbridge announced plans for a binding open commitment period for available capacity on the new pipeline, which will begin at 8 a.m. CDT, Monday, October 3, 2011, and continue until 5 p.m. CDT Wednesday, November 2, 2011. Subject to the required regulatory approvals and sufficient long-term commitments from interested shippers, the pipeline is expected to be in service by mid-2013. Construction of the project is expected to be managed by Enbridge with Enterprise serving as operator.
A dedicated website with additional information about this project for shippers and others will be launched October 3, 2011, and available at www.wranglerpipeline.com.
Enbridge will hold a concurrent binding Open Season offering capacity from Flanagan, Illinois, to the Texas Gulf Coast utilizing a portion of capacity available on the Wrangler Pipeline. Commercial inquiries can be directed to the Enbridge contacts listed above. Additional information on Enbridge's Open Season will be available beginning October 3, 2011.
Enterprise Products Partners L.P. is the largest publicly traded partnership and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. EPD's assets include approximately: 50,000 miles of onshore and offshore pipelines; 192 million barrels of storage capacity for NGLs, refined products and crude oil; and 27 billion cubic feet of natural gas storage capacity. Services include: natural gas transportation, gathering, processing and storage; NGL fractionation, transportation, storage, and import and export terminaling; crude oil and refined products storage, transportation and terminaling; offshore production platform; petrochemical transportation and storage; and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems and in the Gulf of Mexico. Additional information is available at www.enterpriseproducts.com.
Enbridge Inc., a Canadian company, is a North American leader in delivering energy and one of the 2011 Global 100 Most Sustainable Corporations. As a transporter of energy, Enbridge operates, in Canada and the U.S., the world's longest crude oil and liquids transportation system. The Company also has a growing involvement in the natural gas transmission and midstream businesses, and is expanding its interests in renewable and green energy technologies including wind and solar energy, hybrid fuel cells and carbon dioxide sequestration. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company, and provides distribution services in Ontario, Quebec, New Brunswick and New York State. Enbridge employs approximately 6,400 people, primarily in Canada and the U.S. and is ranked as one of Canada's Greenest Employers, and one of the Top 100 Companies to Work for in Canada. Enbridge's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit enbridge.com
This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission. All statements, other than statements of historical fact, included herein that address activities, events, developments or transactions that Enterprise and Enbridge expect, believe or anticipate will or may occur in the future, including anticipated benefits and other aspects of such activities, events, developments or transactions, are forward-looking statements.These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including required approvals by regulatory agencies, the possibility that the anticipated benefits from such activities, events, developments or transactions cannot be fully realized, the possibility that costs or difficulties related thereto will be greater than expected, the impact of competition and other risk factors included in the reports filed with the Securities and Exchange Commission by Enterprise or Enbridge.Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.Except as required by law, neither Enterprise nor Enbridge intends to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE: Enterprise Products Partners L.P.