American Midstream announces commencement of Cayenne Pipeline
American Midstream Partners, LP (AMID) announced Wednesday the completion and commencement of deliveries on the previously announced Cayenne Pipeline, a joint venture between AMID and Targa Resources Corp.
Initially, Cayenne will have 40,000 barrels per day of Y-grade NGL transport capacity and will have the ability to expand to more than 50,000 barrels per day. It will begin at the Targa-operated Venice gas processing plant and deliver to fractionation in Southern Louisiana.
Cayenne is supported by a 15-year dedication for all NGL production from Targa’s 750 million cubic feet per day (Mmcf/d) Venice plant with an inlet from six offshore Gulf of Mexico pipelines.
The commencement of Cayenne provides AMID with strategic transport capabilities for the majority of all NGL volume from its integrated gathering and transportation network in the Gulf of Mexico’s deep-water Mississippi Canyon region.
“The commencement of Cayenne demonstrates AMID’s ability to react to market demand and simultaneously execute on highly attractive commercial opportunities,” Lynn Bourdon III, president and CEO, said. “Cayenne not only benefits offshore producers with a substantial increase in NGL takeaway capacity but also creates meaningful value to AMID by taking an underutilized pipeline and altering its services into a strategic project.”
