Enterprise Products Partners L.P., Anadarko Petroleum Corporation, DCP Midstream Partners, LP and MarkWest Energy Partners, L.P. has announced the formation of a joint venture under which Enterprise will assign 45% ownership interest in its wholly owned Panola Pipeline Company, LLC.
The interest will be evenly divided among Anadarko’s affiliate, WGR Asset Holding Company LLC (WGR), DCP Midstream Partners and MarkWest. Enterprise will continue to serve as operator of the Panola Pipeline and own the remaining 55% interest.
The Panola Pipeline, which transports natural gas liquids (NGL), originates in Carthage, Texas and extends 181 miles to Mont Belvieu, Texas. Following a successful open season, Enterprise recently announced plans to install 60 miles of new pipeline, as well as pumps and other associated equipment as part of an expansion project designed to increase capacity by 50 000 bpd. The incremental capacity is expected to be available in the 1Q16.
“Developing win-win relationships with strategic partners that bring volume commitments or other contributions to the joint venture is a cornerstone of Enterprise’s growth,” said Michael A. Creel, Chief Executive Officer of Enterprise’s general partner. “We are pleased to form this joint venture that benefits and aligns our partners from the wellhead through the fractionator.”
“With Anadarko’s valuable position in the liquids-rich East Texas area, this joint venture provided an excellent opportunity to expand NGL takeaway incrementally to help facilitate future activity and growth,” said Jacqui Dimpel, Anadarko Vice President, Midstream.
“DCP Midstream Partners is excited about our joint venture with these strong partners in the Panola Pipeline system that will support continued growth in East Texas and benefit DPM’s extensive gathering and processing infrastructure in this area,” said Wouter van Kempen, Chairman and Chief Executive Officer of DCP Midstream Partners.
“The expansion of the Panola Pipeline system will provide additional capacity for producers’ growing NGL production and enable us to continue growing our midstream presence in Panola County, Texas,” commented Frank Semple, Chairman, President, and Chief Executive Officer of MarkWest. “We are pleased to be partnering with Enterprise, WGR and DPM to construct this new joint venture project.”
Adapted from press release by Hannah Priestley-Eaton