EPD to Boost ECHO Capacity - Analyst Blog


Enterprise Products Partners L.P. ( EPD ) plans to augment the crude oil storage capacity at its Enterprise Crude Houston ( ECHO ) crude oil terminal, presently under construction at southeast Harris County.

The partnership has acquired 37 acres of land adjacent to ECHO crude oil terminal in order to increase its crude oil storage capacity to around 6 million barrels by the second quarter of 2012, when the ECHO facility is expected to come online.

The ECHO terminal in the vicinity of two crude oil pipelines, including the Seaway system, offers shippers easy access to the world's largest refinery and the Cushing storage and trading center.

The Seaway pipeline system is among the first projects built to ease the oil pressure in Cushing and is jointly owned by Enterprise and Enbridge Inc ( ENB ). The pipeline will be reversed in June to carry around 150,000 barrels per day (bpd) of crude from Cushing to the Gulf Coast.

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.

ECHO is designed to serve as the receiving point for delivery of liquids from the Eagle Ford Shale in South Texas. Enterprise has plans to bring online a 147-mile pipeline by the second quarter of 2012 having a capacity of 350,000 bpd. Phase II of the system expands the partnership's crude oil system into the far southwest portion of the Eagle Ford Shale that consists of an 80-mile pipeline expected to be commissioned during the first quarter of 2013. Both phases are secured through long-term contracts with shippers.

Enterprise holds a Zacks #1 Rank, which is equivalent to a Strong Buy rating for a period of one to three months. For the long term, we maintain an Outperform rating on the stock.

ENBRIDGE INC ( ENB ): Free Stock Analysis Report
ENTERPRISE PROD ( EPD ): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: ECHO , ENB , EPD



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