Engineering News

Enterprise Begins Service at New Hobbs Fractionator
Tuesday August 14, 8:30 am ET

HOUSTON--(BUSINESS WIRE)--Enterprise Products Partners L.P. today announced that construction of its new Hobbs natural gas liquids (NGLs) fractionator in Gaines County, Texas has been completed and the facility is now in service. The plant has the capacity to separate up to 75,000 barrels per day of products such as ethane, propane, isobutane, normal butane and natural gasoline.

"With the completion of the Hobbs fractionator, we add another important piece of our Rockies growth initiative and strengthen our ability to provide valuable midstream services in one of the nation's most active and prolific energy producing regions," said Michael A. Creel, Enterprise president and chief executive officer. "The strong safety performance of the more than 650 employees and contractors, who logged in excess of 1 million hours without a lost time accident, helped us to complete the project ahead of schedule."

Strategically located at the interconnect of the Mid-America Pipeline (MAPL) and Seminole Pipeline systems, the Hobbs fractionator provides the flexibility to supply the nation's largest NGL hub at Mont Belvieu, Texas, an important delivery point for NGLs used as raw materials for petrochemical plants along the Gulf Coast, as well as access the second-largest domestic NGL hub, at Conway, Kansas, which serves consumers and industrial end users in the Midwest.

"With Hobbs now in service," Creel noted, "Enterprise will enhance its ability to provide fractionation services that had been limited because of capacity constraints at the partnership's Mont Belvieu facility."

The new Hobbs fractionator is well positioned to serve petrochemical end users and refineries in West Texas, New Mexico and California. In addition, the Hobbs facility will be able to supply exports to northern Mexico through existing pipeline infrastructure.

Reflecting Enterprise's integrated energy value chain philosophy, the Hobbs fractionator serves as the centerpiece for various projects being completed this year in conjunction with the partnership's Rocky Mountain growth initiative. For instance, Enterprise, as part of a joint venture with TEPPCO Partners, L.P., recently completed the first part of a two-phase expansion to increase the capacity of the Jonah Natural Gas Gathering system that serves the Jonah and Pinedale fields in the Greater Green River Basin of southwestern Wyoming. The additional compression now in service increased capacity of the system to 2 billion cubic feet per day (Bcf/d) and will grow to 2.3 Bcf/d following completion of the second phase, which is expected in the first quarter of 2008. In anticipation of the additional volumes, Enterprise is constructing a new cryogenic processing plant at Opal, Wyoming that is expected to begin service during the fourth quarter of 2007.

In the Piceance Basin, Enterprise is nearing completion of the first phase of its Meeker cryogenic natural gas processing plant. The second phase is presently under construction and scheduled to begin service in mid-2008. The Hobbs fractionator is capable of accommodating the NGLs recovered by Meeker, which will be transported along the Rocky Mountain segment of the MAPL system. To handle the increased volume demands, the partnership has expanded this portion of the MAPL system to provide 50,000 barrels per day (BPD) of incremental capacity for NGLs, 30,000 BPD of which is already in service. The remainder is due to be available in September of 2007. In all, Enterprise has dedicated more than $1.9 billion during the past two years for organic growth projects and selected acquisitions as part of its current Rockies program.

Enterprise Products Partners L.P. is one of the largest publicly traded partnerships with an enterprise value of more than $19 billion, 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. For more information, visit Enterprise on the web. 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.

Source: Enterprise Products Partners L.P.

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