Old Ocean Pipeline to resume service under Enterprise Product Partners, Energy Transfer Partners joint venture
The Old Ocean natural gas pipeline will resume service for the first time since 2012 under a 50/50 joint venture between Enterprise Product Partners and Energy Transfer Partners (ETP) announced on Friday.
Plans call for the 24-inch diameter pipeline extending 240 miles south from Maypearl, Texas, to Sweeny, Texas, to resume service in the second quarter of 2018. Additionally, both entities have committed to expanding the 36-inch North Texas pipeline to increase capacity from West Texas into the Old Ocean Pipeline. The project is slated for completion in the 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,” A.J. “Jim” Teague, CEO of Enterprise Product Partners’ general partner, said. “Old Ocean offers an efficient, timely, cost-effective and integrated solution that provides producers with flow assurance and access to the Gulf Coast.”
Mackie McCrea, the group chief operating officer and chief commercial officer of ETP’s parent company, said ETP is “excited” to work with Enterprise Product Partners to bring “much-needed transportation capacity out of one of the most prolific and active basins in the world.”
ETP will operate the Old Ocean pipeline under terms of the joint venture agreement.
