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Apache commits 100% of Alpine High NGL production to Enterprise

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Apache commits 100% of Alpine High NGL production to Enterprise

Oil and gas producer Apache Corp. committed 100% of its natural gas liquids production in the emerging Alpine High play of the Delaware Basin to Enterprise Products Partners LP under a long-term agreement.

Under the deal, Enterprise would accept at least 205,000 barrels per day of NGLs from Apache, which holds a 336,000 net-acre position in its Alpine High discovery in West Texas, according to a May 24 news release.

Enterprise is building a 658-mile pipeline running from Reeves County, Texas, to its NGL fractionation and storage complex in Mont Belvieu, Texas. The Shin Oak pipeline would have an initial capacity of 550,000 bbl/d and is scheduled for completion in the second quarter of 2019. After the in-service date, Apache has an option to acquire a 33% equity stake in the pipeline.

"Alpine High is an enormous hydrocarbon resource that encompasses rich gas, dry gas and oil-bearing horizons," said A.J. Teague, CEO of Enterprise's general partner. Apache plans to produce a "tremendous volume" of NGLs from the rich gas window of the Alpine High, Teague said.

During Apache's most recent quarterly earnings call, the company said production from the Alpine High averaged 26,300 barrels of oil equivalent per day.