Pipelines planned for Texas oil play

Aug. 23, 2012 at 7:14 AM

HOUSTON, Aug. 23 (UPI) -- Two U.S. pipeline companies announced they formed a joint venture that consolidates two pipeline projects servicing the Eagle Ford shale play in Texas.

Plains All American Pipeline and Enterprise Products Partners announced the joint venture would oversee a 140-mile crude oil and condensate pipeline and a new 35-mile pipeline for the Eagle Ford play.

"This joint venture provides necessary take-away capacity for the growing Eagle Ford region, while reducing capital costs and enhancing returns for both parties," Harry Pefanis, president and chief operating officer of Plains, said in a statement.

Plains in early August said it was expanding its southern Texas Gardendale Gathering system, which includes 90 miles of new pipeline designed to carry 115,000 barrels of oil per day. That expansion wasn't included in the joint venture with Enterprise.

The companies said parts of the new system are under construction. It has a target capacity of 350,000 bpd and includes a terminal facility for 1.8 million barrels of storage.

The entire system for the Eagle Ford play is expected to go into service during the first half of next year.

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