NGL Pipelines Overview
Enterprise owns interests in 14,322 miles of NGL pipelines and 157.2 million barrels of NGL and petrochemical storage capacity. These NGL pipelines transport mixed NGLs and other hydrocarbons from natural gas processing plants to fractionation facilities; distribute and receive NGL products to and from petrochemical plants and refineries; and deliver propane to customers along the Dixie pipeline and certain sections of the Mid-America Pipeline System. Our pipelines provide transportation services to customers on a fee basis; therefore, the gross operating margin for this business is generally dependent upon the volume of product transported and the level of fees charged to customers. Typically, our pipeline customers retain title to the NGL products and the associated commodity price risk.
Enterprise's most significant NGL pipelines are the Mid-America and Seminole pipeline systems which total 9,150 miles. The Mid-America system is a regulated NGL pipeline system consisting of three NGL pipelines: the 2,785-mile Rocky Mountain pipeline, the 2,771-mile Conway North pipeline and the 2,252-mile Conway South pipeline.
The Rocky Mountain section of the pipeline transports mixed NGLs from the Rocky Mountain Overthrust and San Juan Basin areas to the Hobbs hub Located on the Texas-New Mexico border. The Conway North segment links the large NGL hub at Conway, Kansas to refineries, petrochemical plants and propane markets in the upper Midwest. In addition, the Conway North segment has access to NGL supplies from Canada's Western Sedimentary basin through connections with third-party pipelines. The Conway South pipeline, which completed an expansion in 2007, connects the Conway hub with Kansas refineries and transports NGLs from Conway to the Hobbs hub where the Mid-America system interconnects with the Seminole pipeline system.
During 2008, approximately 52% of the volumes transported on the Mid-America Pipeline System were mixed NGLs originating from natural gas processing plants located in the Permian Basin in west Texas, the Hugoton Basin of southwestern Kansas, the San Juan Basin of northwest New Mexico, the Piceance Basin of Colorado, the Uintah Basin of Colorado and Utah and the Greater Green River Basin of southwestern Wyoming.
The Seminole pipeline is a regulated pipeline that transports NGLs from the Hobbs hub and the Permian Basin area of west Texas to markets in southeastern Texas. The primary source of throughput for Seminole is the volume originating from the Mid-America system.
| Facility | Ownership Interest | Miles | Operator | Function |
|---|---|---|---|---|
| NGL Pipelines | ||||
| Mid-America Pipeline System | 100.0% | 7,808 | Enterprise | Transports mixed NGLs produced from over 20 natural gas processing plants in Wyoming, Utah, Colorado and New Mexico to the Seminole pipeline in West Texas. |
| Dixie Pipeline | 74.2% (1) | 1,371 | Phillips | Transports propane from fractionators and refineries in Texas, Louisiana, and Mississippi to customers throughout the Southeast. |
| Seminole Pipeline | 90.0%(2) | 1,342 | Enterprise | Transports mixed NGLs and NGL products received from the Mid-America pipeline in West Texas and from pipelines and processing plants in the Permian basin to the large NGL markets at Mont Belvieu, Texas and the Texas Gulf Coast. |
| EPD South Texas NGL System | 100%(3) | 1,020 | Enterprise | Gathering and transportation pipelines that deliver mixed NGLs to fractionators and NGL products to refineries and petrochemical plants located along the Texas Gulf Coast. |
| Louisiana Pipeline System | Various(4) | 612 | Enterprise and Equilon |
Gathering and transportation pipelines that deliver mixed NGLs to fractionators and NGL products to refineries and petrochemical plants located along the Gulf Coast. |
| Skelly-Belvieu Pipeline | 49.0%(5) | 570 | Enterprise | Transports mixed NGLs from Skellytown, Texas to markets in southeast Texas. |
| Promix NGL Gathering System | 50.0% | 364 | Enterprise | Gathers mixed NGLs from natural gas processing plants in Louisiana. |
| DEP South Texas NGL Pipeline System | 100%(3) | 297 | Enterprise | Transports NGLs from our Shoup and Armstrong fractionation facilities in south Texas to Mont Belvieu, Texas |
| Lou-Tex NGL Pipeline | 100% | 205 | BP | Transports NGL products and refinery grade propylene between Louisiana and Texas; and transports mixed NGLs from Louisiana gas processing facilities to the Mont Belvieu, Texas NGL fractionation facility. |
| Houston Ship Channel Pipeline System | 100% | 252 | Enterprise | Bi-directional system comprised of 6 pipelines from Enterprise's Mont Belvieu complex to refineries and petrochemical customers along the Houston Ship Channel. Also serves import/export facilities. |
| Others | Various(6) | 481 | Enterprise | Transports NGLs in the Gulf Coast. |
(1) We acquired the remaining 25.8% ownership interest in this system during August 2008 and now own 100% of the Dixie Pipeline through our subsidiary, Dixie Pipeline Company.
(2) We hold a 90% interest in this system through a majority owned subsidiary, Seminole Pipeline Company.
(3) Reflects consolidated ownership of these systems by EPO (34%) and Duncan Energy Partners (66%).
(4) Of the 612 total miles for this system, we own 100% of 559 miles and 52.5% of the remaining 53 miles.
(5) Our ownership interest in this pipeline is held indirectly through our equity method investment in Skelly-Belvieu Pipeline Company, which we acquired in December 2008.
(6) Includes our Tri-States, Belle Rose, Wilprise, Chunchula and Bay Area pipelines located in the coastal regions of Alabama, Louisiana, Mississippi and Texas and our Meeker pipeline in Colorado.