The agreements cover a significant portion of the Pioneer JV's expected Eagle Ford Shale production, including commitments for firm natural gas transportation, natural gas processing, natural gas liquid (NGL) fractionation and transportation services and crude oil marketing, Enterprise said in a statement.
The Pioneer JV's NGL-rich natural gas will initially be processed using Enterprise's existing US Gulf Coast facilities until it can be processed at a natural gas processing plant Enterprise is developing in south Texas. This facility is expected to have an initial capacity of 600,000 Mcf/d and an
initial capability to extract as much as 60,000 b/d of NGLs. The plant is expected to being operating in early 2012.
Houston-based Enterprise also said production from the JV will ultimately be transported on its planned 127-mile NGL pipeline that will extend from the new natural gas processing plant to Enterprise's complex at Mont Belvieu, Texas. The pipeline, which is expected to be completed in early 2012, will have an initial capacity of more than 60,000 b/d and can be expanded to
120,000 b/d.
In addition, Enterprise said to accommodate the additional NGLs, it plans to build a fifth NGL fractionation train at its Mont Belvieu facility. The new 75,000 b/d fractionator also is scheduled to be in service in early 2012. In addition, Enterprise's fourth NGL fractionation train, which also has a
capacity of 75,000 b/d, is scheduled to begin operations by the end of 2010.
As part of the crude oil agreements, Enterprise said it will build roughly 100 miles of supply laterals that will deliver crude oil production from the Pioneer JV into the new 140-mile pipeline Enterprise announced earlier this year.
The Pioneer JV's producing area in the Eagle Ford Shale covers over 300,000 gross acres in McMullen, Atascosa, Live Oak, Bee, Karnes and DeWitt counties. The gathering lines required to link the producing wells to Enterprise's midstream assets will be provided by EFS Midstream, a joint
venture between Pioneer and Reliance.
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