|Tejas Natural Gas Liquids, Llc And Enterprise Products Partners L.P. Announce Joint Venture|
FOR IMMEDIATE RELEASE
HOUSTON (Tuesday, January 5, 1999) -- Tejas Natural Gas Liquids, LLC, an affiliate of Shell Oil Company, and Enterprise Products Partners L.P. (NYSE: "EPD") today announced the formation of a new joint venture—Entell NGL Services, LLC—for the development of a natural gas liquids transportation and distribution system.
Entell's initial asset base will include substantially all of Enterprise's existing pipeline facilities in Louisiana. In addition, Entell will create a pipeline system linking storage at Breaux Bridge, Louisiana, to Mont Belvieu, Texas. Entell anticipates the system being capable of distributing products from key NGL sources in southern Louisiana directly to major NGL markets, including the lower Mississippi River corridor, Dixie pipeline, Lake Charles, Louisiana and Mont Belvieu, Texas.
Entell is a limited liability company in which Enterprise and Tejas each have a 50 percent interest. Entell owns 250 miles of pipe connecting several market centers in Louisiana, including Breaux Bridge, Promix, Tebone, Riverside, Sorrento and Garyville. These assets have the capacity to move a total of 80,000 barrels per day with planned expansions capable of increasing the capacity to over 110,000 barrels per day.
"The synergies that Tejas' growing NGL production and Enterprise's asset base bring to Entell supports Tejas' desire to grow its downstream NGL storage and distribution systems both within the Louisiana market and through linkage to Mont Belvieu," said Curtis Frasier, executive vice president of Tejas Energy, LLC.
The joint venture will also be beneficial to Enterprise's ability to serve existing and potential customers and suppliers. "Enterprise has been a natural gas liquids fractionation, storage and pipeline service provider in southern Louisiana and Mont Belvieu, Texas for more than 25 years," said O.S. Andras, president of Enterprise. "Combining our Louisiana pipeline system with Tejas through Entell creates a link between these two major market areas. Our participation in Entell enhances Enterprise's ability to serve the growing needs of our current and potential natural gas liquids customers and suppliers."
Tejas Natural Gas Liquids, LLC is a company of Tejas Energy, LLC, an affiliate of Shell Oil Company. It is responsible for processing and marketing natural gas liquids from Shell's Gulf of Mexico production. Tejas ranks as the largest NGL producer in South Louisiana. Tejas has ownership in processing, fractionation, storage and distribution assets in Louisiana and Texas.
Enterprise is a leading integrated provider of processing and transportation services to producers of natural gas liquids ("NGL") and consumers of NGL products. Enterprise processing operations are concentrated at Mont Belvieu, Texas. Facilities they operate there include one of the largest NGL fractionation and MTBE production facilities in the United States, the largest butane isomerization complex in the United States and two propylene fractionation units.
Enterprise also owns and operates a network of approximately 500 miles of pipeline throughout the Gulf Coast and a fractionation facility in Petal, Mississippi with a capacity of 7,000 barrels per day. The Partnership leases and operates one of only two commercial NGL import/export terminals on the Gulf Coast and NGL storage wells with approximately 35 million barrels of capacity.