Enterprise Products to provide midstream energy services for EOG

Enterprise Products Partners has said that its operating subsidiaries have entered into long-term agreements with EOG Resources (EOG) to provide midstream energy services for EOG’s crude oil and associated liquids-rich natural gas production in the Eagle Ford Shale in South Texas.

Enterprise will utilize its existing assets and build additional infrastructure to provide EOG with a full range of value-added midstream services.

The services include crude oil transportation, storage and exchange; natural gas transportation, treating and processing; and natural gas liquids (NGL) transportation and fractionation.

As part of its long-term agreements, Enterprise will construct a 140-mile pipeline originating in northwestern Karnes County to transport EOG’s crude oil production from the Eagle Ford Shale.

The pipeline will extend to its existing crude oil system in Austin County where it will connect to the partnership’s Sealy Station.

Enterprise plans to build central delivery points for receiving crude oil from trucks and gathering pipelines at multiple locations along the crude oil pipeline route.

Completion of the crude oil pipeline project is expected in the first quarter of 2012.

Enterprise will also provide firm natural gas transportation and processing, as well as NGL transportation and fractionation services to EOG, anchored by seven-year contracts.

In addition to natural gas transportation capabilities, Enterprise will provide EOG with natural gas processing services at the partnership’s planned cryogenic gas processing facility.

With an initial capacity of 600 million cubic feet per day, the new processing plant is projected to be in service in mid 2012.