HOUSTON--(BUSINESS WIRE)--Enterprise Products Partners L.P. (NYSE:EPD), Anadarko Petroleum Corporation (NYSE:APC), DCP Midstream Partners, LP (NYSE:DPM) and MarkWest Energy Partners, L.P. (NYSE:MWE) today announced the formation of a joint venture under which Enterprise will assign 45 percent ownership interest in its wholly owned Panola Pipeline Company, LLC. The interest will be evenly divided among Anadarko’s affiliate, WGR Asset Holding Company LLC (WGR), DCP Midstream Partners and MarkWest. Enterprise will continue to serve as operator of the Panola Pipeline and own the remaining 55 percent interest.
The Panola Pipeline, which transports natural gas liquids (“NGL”), originates in Carthage, Texas and extends 181 miles to Mont Belvieu, Texas. Following a successful open season, Enterprise recently announced plans to install 60 miles of new pipeline, as well as pumps and other associated equipment as part of an expansion project designed to increase capacity by 50,000 barrels per day (“BPD”). The incremental capacity is expected to be available in the first quarter of 2016.
“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,” said Michael A. Creel, chief executive officer of Enterprise’s general partner. “We are pleased to form this joint venture that benefits and aligns our partners from the wellhead through the fractionator.”
“With Anadarko’s valuable position in the liquids-rich East Texas area, this joint venture provided an excellent opportunity to expand NGL takeaway incrementally to help facilitate future activity and growth,” said Jacqui Dimpel, Anadarko vice president, Midstream.
“DCP Midstream Partners is excited about our joint venture with these strong partners in the Panola Pipeline system that will support continued growth in East Texas and benefit DPM’s extensive gathering and processing infrastructure in this area,” said Wouter van Kempen, chairman and chief executive officer of DCP Midstream Partners.
“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,” commented Frank Semple, chairman, president, and chief executive officer of MarkWest. “We are pleased to be partnering with Enterprise, WGR and DPM to construct this new joint venture project.”
Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. Our services include: natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage and import and export terminals; crude oil and refined products transportation, storage and terminals; offshore production platforms; petrochemical transportation and services; and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems and in the Gulf of Mexico. Additional information regarding Enterprise can be found on its website, www.enterpriseproducts.com.
Anadarko Petroleum Corporation’s mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world’s health and welfare. As of year-end 2014, the company had approximately 2.86 billion barrels-equivalent of proved reserves, making it one of the world’s largest independent exploration and production companies. For more information about Anadarko and APC Flash Feed updates, please visit www.anadarko.com.
DCP Midstream Partners, LP (NYSE:DPM) is a midstream master limited partnership engaged in the business of gathering, compressing, treating, processing, transporting, storing and selling natural gas; producing, fractionating, transporting, storing and selling NGLs and recovering and selling condensate; and transporting, storing and selling propane in wholesale markets. DCP Midstream Partners, LP is managed by its general partner, DCP Midstream GP, LP, which in turn is managed by its general partner, DCP Midstream GP, LLC, which is 100% owned by DCP Midstream, LLC, a joint venture between Phillips 66 and Spectra Energy. For more information, visit the DCP Midstream Partners, LP website at www.dcppartners.com.
MarkWest Energy Partners, L.P. is a master limited partnership engaged in the gathering, processing and transportation of natural gas; the gathering, transportation, fractionation, storage and marketing of natural gas liquids; and the gathering and transportation of crude oil. MarkWest has a leading presence in many unconventional gas plays including the Marcellus Shale, Utica Shale, Huron/Berea Shale, Haynesville Shale, Woodford Shale and Granite Wash formation. Additional information regarding MarkWest can be found at its website, www.markwest.com.
This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission. All statements, other than statements of historical fact, included herein that address activities, events, developments or transactions that Enterprise, Anadarko, MarkWest, DCP Midstream Partners and their respective general partners or other affiliates expect, believe or anticipate will or may occur in the future are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from expectations, including required approvals by regulatory agencies, the possibility that the anticipated benefits from such activities, events, developments or transactions cannot be fully realized, the possibility that costs or difficulties related thereto will be greater than expected, the impact of competition, and other risk factors included in Enterprise’s, Anadarko’s, MarkWest’s and DCP Midstream Partner’s (or their respective affiliates’) reports filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. Except as required by law, Enterprise, Anadarko, MarkWest and DCP Midstream Partners do not intend to update or revise their forward-looking statements, whether as a result of new information, future events or otherwise.