Business & Finance
Business and Finance
Business and Finance
Fri, February 20, 2009Thu, February 19, 2009Wed, February 18, 2009Tue, February 17, 2009Mon, February 16, 2009Fri, February 13, 2009Thu, February 12, 2009Wed, February 11, 2009Tue, February 10, 2009Southern Union and Enterprise Sign Long-Term Natural Gas Liquids Fractionation Agreement
Published in Business and Finance on Tuesday, February 17th 2009 at 4:31 GMT, Last Modified on 2009-02-17 04:32:39 by Market Wire
HOUSTON--([ BUSINESS WIRE ])--SUG Energy, LLC, a subsidiary of Southern Union Company (NYSE:SUG), and Enterprise Products Operating LLC, an affiliate of Enterprise Products Partners L.P. (NYSE:EPD), today announced they have entered into a 10-year, natural gas liquids (NGL) fractionation agreement.
The agreement provides Southern Union with up to 38,000 barrels per day (BPD) of firm fractionation capacity at Enterprise's Mont Belvieu, Texas, facility beginning January 1, 2010.
"In light of growing NGL volumes from the Rockies and Midcontinent, which could impact the future availability of fractionation capacity, we felt it prudent to secure long-term, reliable capacity for our NGL volumes produced in the Permian Basin," said Roger A. Farrell, Southern Union's senior vice president, midstream operations. "Enterprise is well positioned, with both existing and planned infrastructure, to provide flexible, reliable and cost-effective fractionation services for our product."
A.J. "Jim" Teague, Enterprise's executive vice president and chief commercial officer, said, "This agreement is a clear illustration of our ongoing strategy to utilize the core assets that comprise our integrated energy value chain as a foundation for building mutually beneficial, long-term relationships. As the largest NGL hub in the country, Enterprise's Mont Belvieu complex is a strategically important component of the nation's energy infrastructure, and we look forward to providing Southern Union with additional business opportunities to maximize the value of their midstream operations."
With capacity of 225,000 BPD, Enterprise's Mont Belvieu facility is the world's largest fractionation complex, and accesses the largest concentration of refineries and petrochemical plants in the world. Enterprise also has more than 100 million barrels of liquids storage capacity at Mont Belvieu.
Southern Union Company, headquartered in Houston, is one of the nation's leading diversified natural gas companies, engaged primarily in the transportation, storage, gathering, processing and distribution of natural gas. The company owns and operates one of the nation's largest natural gas pipeline systems with approximately 20,000 miles of gathering and transportation pipelines and North America's largest liquefied natural gas import terminal, along with serving more than half a million natural gas end-user customers in Missouri and Massachusetts. For further information, visit [ www.sug.com ].
Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and is a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil and petrochemicals. Enterprise transports natural gas, NGLs, crude oil and petrochemicals through more than 35,000 miles of onshore and offshore pipelines. Services include natural gas transportation, gathering, processing and storage; NGL fractionation (or separation), transportation, storage, and import and export terminaling; crude oil transportation; and offshore production platform services. Enterprise Products Partners L.P. is managed by its general partner, Enterprise Products GP LLC, which is wholly owned by Enterprise GP Holdings L.P. (NYSE:EPE). For more information on Enterprise GP Holdings L.P., visit [ www.enterprisegp.com ].
