Enterprise Products Partners, Anadarko Petroleum, DCP Midstream Partners and MarkWest Energy Partners have formed a joint venture (JV) for the Panola natural gas liquids (NGL) pipeline in Texas, US.
The pipeline starts in Carthage and extends 181 miles to Mont Belvieu, Texas.
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Under the JV, Enterprise will assign 45% ownership interest in its Panola Pipeline Company.
The stake will be equally divided among Anadarko’s affiliate, WGR Asset Holding Company, DCP Midstream Partners and MarkWest.
Enterprise will continue to operate the Panola pipeline and own the remaining 55% stake.
Enterprise has recently unveiled plans to install 60 miles of new pipeline, as well as pumps and other related equipment as part of an expansion project designed to increase capacity by 50,000 barrels per day.
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By GlobalDataThe incremental capacity is expected to be available in the first quarter of 2016.
Enterprise general partner chief executive officer Michael Creel said: "Developing win-win relationships with strategic partners that bring volume commitments or other contributions to the joint venture is a cornerstone of Enterprise’s growth.
"We are pleased to form this joint venture that benefits and aligns our partners from the wellhead through the fractionator."
MarkWest chairman, president, and chief executive officer Frank Semple said: "The expansion of the Panola Pipeline system will provide additional capacity for producers’ growing NGL production and enable us to continue growing our midstream presence in Panola County, Texas."
Image: MarkWest chairman, president, and chief executive officer Frank Semple. Photo: Courtesy of MarkWest Energy Partners, L.P.
