American Midstream Partners has announced its Cayenne Pipeline is in service, Kallanish Energy reports.
The project was a joiut venture by the Houston-based company and Targa Midstream Services. It will initially move 40,000 barrels per day (BPD) of Y-grade natural gas liquids in Louisiana. That capacity could grow to 50,000 BPD, the companies said.
The liquids are from six offshore pipelines that are being moved onshore for processing and fractionation.
The line provides "strategic transport capabilities for the majority of all NGL volumes out of the Gulf of Mexico's deepwater Mississippi Canyon region,” American Midstream Partners said.
The pipeline is supported by a 15-year contract for all NGL production from Targa's Venice gas processing plant with a capacity of 750 million cubic feet per day (MMcf/d), the company said.
The pipeline runs from Venice, La., where Targa has a gas-processing plant, to a pipeline near Toca in southwest Louisiana.
"The commencement of Cayenne demonstrates AMID's ability to react to market demand and simultaneously execute on highly attractive commercial opportunities. Cayenne not only benefits offshore producers with a substantial increase in NGL take away capacity, but also creates meaningful value to AMID by taking an underutilized pipeline and altering its services into a strategic project," said Lynn Bourdon III, president and CEO, in a statement.
The joint venture had been announced last August.