Enterprise Products Partners said it will team up with Anadarko Petroleum and Denver-based DCP Midstream to build a pipeline that will transport natural-gas liquids from Colorado to the Gulf Coast, the country’s refining hub.
The 435-mile pipeline, called Front Range, will have an initial capacity of 150,000 barrels per day and run from the Denver-Julesburg Basin in Weld County to Skellytown, in the Texas Panhandle.
The capacity can be expanded to 230,000 bpd, the companies said in a statement.
Enterprise will construct and operate the pipeline, which is expected to begin service in the fourth quarter of 2013.
Oil and gas production from shale formations in the United States has surged, and energy companies are scrambling to build infrastructure to get supplies to refining hubs, especially the Gulf Coast, which is home to roughly half of the country’s refining capacity.
Separately, DCP Midstream Partners said it would invest $85 million for a 10 percent stake in the Texas Express pipeline joint venture.
The Texas Express pipeline will run 580 miles from Skellytown to Enterprise’s natural-gas liquid fractionation plant in Mont Belvieu, near the Gulf Coast. Reuters
