A leading master limited partnership (MLP),
Enterprise Products Partners L.P.
) announced the commencement of a binding open season for its
associate Panola Pipeline Company, LLC.
ENTERPRISE PROD (EPD): Free Stock Analysis
PLAINS ALL AMER (PAA): Free Stock Analysis
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The associate has proposed the expansion of the Carthage to
Lufkin portion of its natural gas liquids (NGL) pipeline system.
The binding open season is aimed at finding shipper backing for
the proposed expansion.
A 181-mile long Panola Pipeline starts near Carthage in Panola
County, Texas and supports the oil and gas production regions of
Haynesville and Cotton Valley. The pipeline, which stretches to
destination points at Mont Belvieu in Chambers County, Texas,
facilitates shippers in gaining passage into the world's largest
NGL fractionation complex. The access extends to the amenities
owned and operated by Enterprise.
The Panola expansion project, which banks on the shipper response
to the open season, is intended to be designed in a manner so as
to accommodate about 15,000 barrels per day of additional
Attaining the incremental capacity would require the fixing of
pumps and associated equipment. The additional capacity would be
available starting from mid-to-late second quarter 2013.
Enterprise Products Partners is engaged in providing a wide range
of midstream energy services to the producers and consumers of
natural gas, NGL and crude oil. The partnership's asset portfolio
after its merger with GulfTerra includes integrated natural gas
and NGL transportation, fractionation, processing, storage, and
import/export facilities in the U.S. In addition, it consists of
a diversified portfolio of onshore and offshore energy
infrastructure assets. The partnership's NGL fractionation,
pipelines, and storage facilities are located in Texas,
Louisiana, and Mississippi.
Enterprise Products Partners, which recently entered into a 50/50
joint venture with
Plains All American Pipeline, L.P.
) for a crude oil pipeline in South Texas, holds a Zacks #2 Rank
(short-term Buy rating). Longer term, we maintain our Neutral