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Enterprise Products Partners L.P. said on Thursday that a pipeline it is converting from shipping natural gas liquids (NGL) to crude oil will begin in February limited operations to ship crude from the Permian to the Texas Gulf Coast, potentially easing some bottlenecks in the basin.
“Enterprise is in the process of commissioning facilities related to the conversion of one of the Seminole NGL pipelines to crude oil service,” the company said in its 2018 results release on Thursday.
Enterprise expects the repurposed Seminole pipeline to begin limited operations next month and to become fully operational in April 2019.
The repurposed crude oil pipeline is planned to have a capacity to ship around 200,000 bpd, and the conversion of the pipeline is supported by a 10-year contract with firm demand fees, Enterprise Products said.
When it announced plans to repurpose one of its NGL pipelines to crude oil, Enterprise said in December 2017 that after the Seminole conversion is completed, the partnership would have a total crude oil pipeline capacity of more than 650,000 bpd from the Permian to its crude oil hub in the Houston area.
Enterprise Products’ announcement that the repurposed crude oil pipeline would begin limited service as soon as February comes a day after ExxonMobil, Plains All American Pipeline, and Lotus Midstream said that they would build a pipeline capable of transporting more than 1 million barrels per day of crude oil and condensate from the Permian in West Texas to the Texas Gulf Coast.
Also on Wednesday, Magellan Midstream Partners and Navigator Energy Services said they were extending the open season to solicit commitments from shippers for the potential new Voyager pipeline to transport various grades of light crude oil and condensate from Cushing, Oklahoma to Houston, Texas.
“Significant interest has been expressed from potential shippers, particularly those reaching Voyager from connecting carriers,” the companies said.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.