Midstream energy service provider,
Enterprise Products Partners L.P.
) announced that another natural gas liquids (NGL) fractionator
at its Mont Belvieu, Texas complex is now operational. The new
unit, which is the seventh by the company at Mont Belvieu, has
the capability to fractionate up to 85,000 barrels per day (BPD)
of NGL. It increases total fractionation capacity at Enterprise's
Mont Belvieu facility to 570,000 BPD.
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The new fractionator will also facilitate the increasing NGL
production from domestic shale plays, including the Eagle Ford in
South Texas, and other basins in the Rocky Mountain and
The construction of the eighth fractionator is also expected to
be completed by mid-fourth quarter 2013. Both the seventh and
eighth fractionators are being developed as part of a joint
venture with Western Gas Partners, LP, an affiliate of
Anadarko Petroleum Corporation
). Enterprise will operate the new units and owns a 75% interest.
Western Gas Partners holds the remaining 25% interest in each of
the two fractionators.
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 Products Partners, a leading master limited
partnership (MLP), is engaged in a wide range of midstream energy
services to producers and consumers of natural gas, NGL and crude
oil. With its diverse set of midstream infrastructure assets, we
believe the partnership possesses fundamental strengths, which
will in turn support distribution growth consistently.
The partnership currently holds a Zacks Rank #3, which is
equivalent to a short-term Hold rating. However, there are other
Zacks Ranked #1 (Strong Buy) stocks -
Susser Petroleum Partners LP
China Petroleum & Chemical Corp.
) - that are expected to perform more impressively over the short