Products Partners L.P.
) has finally completed the first phase of its Eagle Ford Crude Oil
pipeline. The transport system has started accepting crude
oil deliveries from the prolific Eagle Ford Shale in South Texas
for the planned transmission to the Gulf Coast refiners.
The 24-inch diameter pipeline that can transport 350,000 barrels
of light, sweet oil per day, extends 147 miles from Wilson County,
Texas to Sealy, Texas. The pipeline has been linked with
Enterprise's Rancho pipeline at Sealy and is being connected with
Gulf Coast facilities that include Enterprise Crude Houston (ECHO)
crude oil terminal.
ECHO crude oil storage complex − with approximately 4 million
barrels per day of refining capacity − is presently under
construction at southeast Harris County. The initial deliveries of
Eagle Ford Shale crude oil into Houston will likely coincide with
the planned commissioning of ECHO in July 2012.
The ECHO facility is being developed as the leading delivery
point in the Gulf Coast for the growing North American crude oil
output and also offers shippers prospects to capitalize on their
production. This terminal is in the vicinity of two crude oil
pipelines, including the Seaway system, and offers shippers easy
access to the world's largest refinery and the Cushing storage and
trading center. Recently, the Seaway pipeline came online and made
its first crude oil delivery to Houston from the U.S. oil storage
hub in Cushing, Oklahoma.
Seaway Crude Pipeline Company LLC is equally owned by the units
of Enterprise Products Partners and
). This Seaway system also includes a terminal and distribution
network that originates from Texas City, Texas, and serves
refineries there and in the Houston region. Additionally, it
includes dock facilities at Freeport and Texas City.
Phase II of the Eagle Ford Crude Oil system expands the
partnership's crude oil system into the far southwest portion of
the Eagle Ford Shale. The phase consists of an 80-mile pipeline
expected to be commissioned during the first quarter of 2013. It
will extend from Wilson County to Gardendale, Texas, in La Salle
Enterprise Products Partners, a leading master limited
partnership, is engaged in a wide range of midstream energy
services to producers and consumers of natural gas, natural gas
liquid, and crude oil. With its diverse set of midstream
infrastructure assets, we believe the partnership possesses
fundamental strengths, which will in turn support consistent
Enterprise holds a Zacks #2 Rank, which is equivalent to a Buy
rating for a period of one to three months. For the long term, we
maintain a Neutral rating on the stock.
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