“We look forward to putting our experience and assets to work for Pioneer and its partners, who we believe hold one of the most attractive NGL-rich natural gas and crude oil acreage positions in the Eagle Ford Shale,” Enterprise president and Chief Executive Officer Michael A. Creel said. “The flexibility of our existing integrated network, combined with new options that will be available with our assets currently under construction, has positioned Enterprise to provide a tailored solution for meeting the crude oil, natural gas and NGL infrastructure needs of producers in the Eagle Ford Shale.”
The Pioneer JV’s NGL-rich natural gas will initially be processed using Enterprise’s existing U.S. Gulf Coast facilities until it can be processed at Enterprise’s previously announced natural gas processing plant that is under development at Mont Belvieu in South Texas. Completion of this processing plant is expected early in 2012.
The Pioneer JV’s NGL production will ultimately be transported on Enterprise’s new 127-mile NGL pipeline that will extend from the new natural gas processing plant to Enterprise’s complex at Mont Belvieu. The new NGL pipeline will have an initial capacity of more than 60,000 BPD, which can be readily expandable to over 120,000 BPD, and is also scheduled for completion in early 2012. As part of the crude oil agreements, Enterprise will construct approximately 100 miles of supply laterals that will deliver crude oil production from the Pioneer JV into the new 140-mile pipeline Enterprise announced earlier this year.