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Natural gas and propane company Energy Transfer Partners has signed an agreement with Holland-based global commodity trading company Trafigura Beheer BV for the launch of a new crude and condensate pipeline running from the Eagle Ford shale formation in South Texas to Corpus Christi on the Gulf Coast.
The project also includes the conversion of existing pipelines operated by Energy Transfer, as well as the construction of new sections of pipe. The pipeline will run a total of 82 miles and will be able to carry 100,000 barrels of crude oil and condensate per day. In a joint statement, the two companies said that the project is expected to be completed within nine to 12 months. Thanks to the project, crude oil extracted from the Eagle Ford shale will easily reach Trafigura's deep-water terminal in Corpus Christi.
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According to Lee Hanse, executive vice president of business development for Energy Transfer Partners, joining the company's pipeline assets with Trafigura's deep-water facilities is an excellent opportunity for Eagle Ford drilling companies to have their production moved and exported. By converting the existing pipeline, the project will facilitate supplies of crude and condensate in the region, he added.
Meanwhile, Trafigura will be providing extra capacity for tankers and barges by opening a new deep-water dock. This will facilitate increasing exports from the Gulf Coast and meet the demand for more production delivered at terminals, the statement said.