The new Texas Express Pipeline (TEP) will originate from Skellytown, Texas, and extend to natural gas liquids (NGL) fractionation and storage facilities in Mont Belvieu, Texas. Its initial capacity will be approximately 280,000 bbl/d of gas, which can be expanded to approximately 400,000 bbl/d.
The proposed pipeline is planned to help producers in west and central Texas, Rocky Mountain in southern Oklahoma, and the mid-continent maximise the value of their natural gas production by providing additional takeaway capacity and enhanced access to the Gulf Coast NGL market.
In addition to the pipeline, the joint venture will include two new NGL gathering systems. The first will connect TEP to natural gas processing plants in the Anadarko/Granite Wash production area located in the Texas Panhandle and western Oklahoma. The second NGL gathering system will connect the new pipeline to central Texas, Barnett Shale processing plants.
Volumes from the Rockies, Permian Basin and mid-continent regions will be delivered to the TEP system utilising Enterprise's existing Mid-America Pipeline assets between the Conway hub and Enterprise's Hobbs NGL fractionation facility in Gaines County, Texas. Enterprise will construct and serve as the operator of the pipeline, while Enbridge will build and operate the new gathering systems.
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The pipeline and gathering systems are expected to begin service in the second quarter of 2013, subject to regulatory approvals.
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