Enterprise Products Partners Wednesday announced plans to convert one of its pipelines that transports natural gas liquids from the Permian Basin to the Texas Gulf Coast to crude oil service.
This pipeline conversion would provide the partnership with total crude oil pipeline capacity of over 650,000 barrels per day (BPD) from the Permian Basin to Enterprise’s crude oil hub in the Houston area.
“We have had strong demand for crude oil transportation, storage and marine terminal services for crude oil production from the Permian Basin,” said A.J. “Jim” Teague, CEO of Enterprise’s general partner.
The conversion is expected to be completed in the first half of 2020, Kallanish Energy reports.
Midstreamer Enterprise has three existing NGL pipelines that flow from the Permian to the Texas Gulf Coast: Seminole Blue, Seminole Red and Chaparral.
The Shin Oak NGL pipeline, currently under construction, will be the partnership’s fourth NGL pipeline from the Permian to the Texas Gulf Coast. Shin Oak is expected to be in service in the second quarter of 2019.
The completion of the Shin Oak pipeline provides Enterprise the flexibility to divert NGL volumes from at least one of its existing NGL pipelines onto Shin Oak and repurpose the vacated NGL pipeline to crude oil service, according to the company. Enterprise is currently evaluating which NGL pipeline(s) to repurpose.