Midstream energy service provider,
Enterprise Products Partners, L.P.
Western Gas Partners, LP
) have teamed up to hold natural gas liquid (NGL) fractionation
trains 7 and 8.
Currently, both trains are under construction at Enterprise's
complex in Mont Belvieu, Texas and are expected to commence
commercial operations in the fourth quarter of 2013. Trains 7 and
8 are designed to fractionate around 170,000 barrels per day
(bpd) of NGLs.
Enterprise holds the majority ownership interest of 75% in the
joint venture (JV), while Western Gas retains the remaining 25%
stake. The latest JV is also the third midstream energy
infrastructure project in which Enterprise has partnered with
Anadarko Petroleum Corporation
) and its affiliates.
Western Gas - a master limited partnership owned by Anadarko -
handles transportation, gathering and processing of natural gas,
natural gas liquids, crude oil and refined products. Anadarko,
being a strategic partner has made considerable volume commitment
to Enterprise's facilities, including NGLs to its fractionation
complex at Mont Belvieu.
Earlier this month, Enterprise stated that it is steadily
progressing with the development of a project to transport
diluent-quality natural gasoline from its Mont Belvieu, Texas
liquids storage complex to several potential delivery points in
and around Chicago. This project is likely to add new connections
to the partnership's pre-existing Southern Lights and Cochin
As Eagle Ford Shale is gaining traction, pipeline companies and
midstream operators are increasingly looking to the South Texas
play for opportunities to build new networks. Enterprise is
poised to benefit from its existing assets and new developments,
like the Texas Express Pipeline project, in providing packaged
services to producers in emerging shale plays.
Enterprise carries a Zacks Rank #2 (Buy). However, Zacks Ranked
#1 (Strong Buy)
Hornbech Offshore Services, Inc.
) is expected to perform impressively over the short term.
ANADARKO PETROL (APC): Free Stock Analysis
ENTERPRISE PROD (EPD): Free Stock Analysis
HORNBECK OFFSHR (HOS): Free Stock Analysis
WESTERN GAS PTR (WES): Free Stock Analysis
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