Two major energy companies have joined forces to resume service on another pipeline to carry product directly out of the Permian basin to the coastal refineries.
Enterprise Products Partners L.P. of Houston and Energy Transfer Partners, L.P. of Dallas formed a 50/50 venture to resume service of the Old Oceannatural gas pipeline that has been idled since 2012. The 24-inch diameter line originates at Maypearl, Texas in Ellis county and extends 240 miles south to Sweeny in Brazoria county, texas.
Service is expected to resume in the second quarter of this year. The two companies are also expanding their jointly owned North Texas 3-inch Pipeline that will provide more capacity from West Texas for deliveries into the Old Ocean Pipeline. The expansion project should be completed by late fourth quarter of 2018.
“Bringing the Old Ocean pipeline back into service will help meet the immediate demand for takeaway capacity from the growing Delaware Basin and Midland Basin,” said A.J. “Jim” Teague, chief executive officer of Enterprise’s general partner. “Old Ocean offers an efficient, timely, cost-effective and integrated solution that provides producers with flow assurance and access to the Gulf Coast.”