|Enterprise Orders Pipe for NGL Pipeline; Expands Plans for NGL Pipeline System|
HOUSTON--(BUSINESS WIRE)--Dec. 9, 1999--Enterprise Products Partners L.P. (NYSE:EPD) announced today that it has expanded its plans for the development of a natural gas liquids ("NGL") pipeline system that will provide integrated transportation and storage services to link growing supplies of NGLs and NGL products in Louisiana and Mississippi with the largest NGL markets in the United States located on the Texas Gulf Coast. The company has ordered pipe for the construction of a 12", 206-mile NGL pipeline that will connect its Breaux Bridge, La. NGL storage facility with its Mont Belvieu, Texas NGL and liquids complex.
The pipeline will have an initial capacity of 50,000 barrels per day, in batch mode, for the transportation of mixed NGLs and NGL products (ethane, propane, butane, isobutane and natural gasoline). The design for the pipeline allows for efficient expansion to approximately 80,000 barrels per day. Construction of the pipeline is expected to be completed during the third quarter of 2000.
This new pipeline is an expansion of the Lou-Tex propylene pipeline that Enterprise is acquiring from an affiliate of Shell Oil Company in a previously announced transaction. As the result of the plans to construct a parallel NGL pipeline, the Lou-Tex pipeline will remain dedicated to the transportation of chemical grade propylene after completion of the acquisition.
"As a result of greater than expected interest from producers and consumers of NGLs, we have increased the scope of our Louisiana to Mont Belvieu NGL pipeline project and plan to build a second pipeline from Breaux Bridge to Mont Belvieu," stated O.S. "Dub" Andras, president and CEO of Enterprise.
"This integrated pipeline and storage system gives customers the flexibility to fractionate NGLs in Louisiana for consumption by markets in either the Mississippi River industrial corridor or on the Louisiana and Texas Gulf Coast, or to transport mixed NGLs to Mont Belvieu for fractionation and ultimate consumption by adjacent industries," stated Andras.
Enterprise Products Partners L.P., with an enterprise value of over $1.9 billion, is one of the leading midstream energy service companies in North America, providing the complete services of processing, fractionation, transportation and storage to producers of NGLs and consumers of NGL products. Enterprise has ownership interests in and operates some of the largest natural gas processing and NGL fractionation facilities in the United States, the largest commercial isobutane complex in the United States, two propylene fractionation facilities, an NGL import/export terminal, approximately 43.7 million barrels of net storage capacity, a 2,400-mile network of pipelines and an MTBE production facility, all located on the U.S. Gulf Coast. The Gulf Coast accounts for approximately 55% of U.S. NGL production and 75% of U.S. demand for NGLs.
This press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 based on the beliefs of the company, as well as assumptions made by, and information currently available to management. Although Enterprise believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.
CONTACT: Enterprise Products Partners L.P., Houston Randy Fowler, 713/880-6694 http://www.epplp.com