Enterprise Products Partners has announced that its affiliates have entered into long-term agreements with Chevron to provide a comprehensive package of midstream services for Chevron's natural gas production in the Piceance Basin of northwest Colorado.
As part the processing contract, Enterprise will gather natural gas originating from Chevron’s 33,000-acre Western Slope development area in Garfield County, Colorado. The volumes will be transported through Enterprise’s 48-mile, 36-inch diameter Piceance Creek Gathering System to the partnership’s recently completed Meeker natural gas processing facility.
The first phase of the Meeker complex, which was placed into service in October of 2007, is designed to process up to 750 million cubic feet per day (mmcf/d) of natural gas and has the capability to extract as much as 35,000 barrels per day (bpd) of natural gas liquids (NGLs). Phase II, which will double capacity of the facility to 1.5 billion cubic feet per day (bcf/d) of natural gas and 70,000bpd of NGLs, is projected to begin operations in summer 2008.
Under the terms of a separate transportation and fractionation exchange agreement, Enterprise will receive Chevron’s mixed NGLs extracted at Meeker and utilize the flexibility of its integrated midstream network, which includes the Mid-America Pipeline (MAPL), to provide purity products to Chevron.
Michael Creel, president and CEO of Enterprise, said: We are pleased that Chevron has selected Enterprise as the midstream energy services provider for all of its Piceance Basin production and look forward to a long and mutually beneficial relationship. This agreement strengthens our position as a premier player in the thriving Piceance Basin and illustrates how producers have come to recognize the importance of our Rockies infrastructure and our integrated assets farther downstream as they continue to develop one of the nation’s most prolific energy producing regions.