Enterprise Products Partners LP intends to convert a Permian Basin-to-Gulf Coast NGL pipeline to crude oil service, aiming to boost the partnership's crude oil pipeline capacity from the prolific oil play to its crude oil hub in Houston to 650,000 barrels per day.
Enterprise is evaluating which of its NGL pipelines it would convert. Options include its Seminole Blue, Seminole Red and Chaparral pipelines. A fourth NGL pipeline, Shin Oak, is under construction and would be placed into service in the second quarter of 2019. Upon completion, the Shin Oak pipeline would allow Enterprise to divert NGL volumes from one of the three existing pipelines to Shin Oak, with the vacated pipeline to be converted to crude oil service.
The conversion project is scheduled for completion in the first half of 2020, according to a Dec. 6 news release.
"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. Teague, CEO of Enterprise's general partner, saying the project demonstrates the partnership's "system flexibility."
