The company will convert the pipeline to crude oil service that is in line with its strategy to expand its gathering system in the Permian Basin of West Texas.
The 8-inch diameter pipeline, which extends from Reeves County, Texas to Lea County, New Mexico, has a capacity of approximately 54,000 barrels per day (bpd) of crude oil.
The newly acquired asset will provide a growing number of major producers in the Bone Springs/Avalon Play with an important outlet for their crude oil through a link to the Basin Pipeline.
The company said that accessing the Basin system will allow shippers to reach other key areas of Enterprise’s integrated energy network, including major storage facilities at Midland, Texas and Cushing, Oklahoma.
In conjunction with the acquisition, Enterprise will build a central delivery point and associated infrastructure for receiving truck deliveries of crude oil and transporting it to the Basin Pipeline.
The construction of the new facilities and conversion of the pipeline to crude oil service is expected to be completed by the end of 2011.
