The shippers have tendered 15-year, ship-or-pay transportation agreements containing volume commitments that total 232,000 barrels per day.
The TEP mainline will extend about 580 miles to Enterprise’s natural gas liquids (NGL) fractionation and storage hub at Mont Belvieu, Texas and will provide access to other third-party facilities in the area.
Production from the Rockies, Permian Basin and Mid-continent will be delivered into TEP through Enterprise’s existing Mid-America Pipeline System moving north through Oklahoma towards Conway, Kansas and south into the Permian Basin.
The joint venture will also build two new NGL gathering systems, one of which will connect TEP to natural gas processing plants in the Anadarko/Granite Wash production area located in the Texas Panhandle and Western Oklahoma.
The other NGL gathering system will connect the new pipeline to Barnett Shale natural gas processing plants located in Central Texas.
Enterprise will build and operate the pipeline, while Enbridge will develop and operate the new gathering systems.
The pipeline and related gathering systems are expected to begin service in the second quarter of 2013, subject to regulatory approvals.
