Enterprise Products Expands ECHO Crude Storage - Eagle Ford Receipt Point

Enterprise Product Partners announced the acquisition of a 37-acre tract next door to the company's Enterprise Crude Houston (ECHO) oil terminal and plans to expand storage capacity to 6 million barrels. The expansion will be completed just in time to begin  receiving crude from Enterprise's 350,000 b/d Eagle Ford pipeline set for full completion in Q1 2013. The first phase of Enterprise's Eagle Ford pipeline is set to be completed in the second quarter of 2012 and the line will be fully operational by the first quarter of 2013. The expanded receipt point will also be able to receive crude from the Seaway system that is being reversed to bring crude from Cushing to the Gulf Coast and the Cameron Highway System that delivers oil from the Gulf of Mexico.

New CME Crude Contract Delivery Point

There is also potential for the storage and receipt point to become the delivery point of a new Chicago Mercantile Exchange (CME) crude oil contract. The traditional contract priced in Cushing Oklahoma, West Texas Intermediate (WTI), has come under scrutiny as differentials expanded to $10-15 less than comparable Brent crude oil prices. The new CME contract will provide an alternate trading point that is better aligned with Gulf Coast prices.

For reference, the 6 million barrels of storage at ECHO will be a little less than 10% of total storage capacity estimated in Cushing, OK.

Read the full press release at enterpriseproducts.com

Copano Energy Expanding the Eagle Ford's DK Pipeline To McMullen County

Copano South Texas

Copano Energy announced an additional Eagle Ford pipeline and midstream expansion related to its DK Pipeline. The company is expanding the pipeline 65-miles southwest into McMullen County. The project will begin service in the first half of 2013 and will follow the same route as the Copano and Magellan Eagle Ford Condensate Pipeline.

Total costs are estimated at $120 million and the project is supported by a long-term fee based agreement with Petrohawk Energy, a subsidiary of BHP Billiton. Copano will provide midstream gathering and handling services in exchange for committed volumes of production from BHP in McMullen County. 

Read the full release at copanoenergy.com

Southcross Energy Adding Eagle Ford Natural Gas Processing & Fractionation

Southcross Energy S. TX Plants

Southcross Energy announced an expansion to its South Texas natural gas processing and fractionation complex. Southcross is adding the Bonnie View Fractionator in Refugio County, 25 miles north of Corpus Christi. The fractionator will have initial capacity of 11,500 bbls/d of natural gas liquids (NGLs) and can be expanded to 15,000 bbls/d.

This plant is in addition to company's previously announced Woodsboro gas processing unit in the same area and the company's Gregory gas processing plant and fractionator east of Corpus Christi in San Patricio County. The Woodsboro gas processing facility has capacity of 200 mmcfd and the Gregory unit has capacity of 135 mmcfd. The Gregory fractionator will also expand to full utilization at 4,800 bbls/d of NGLs.

In conjunction with the new Bonnie View Fractionator, the company will also construct pipelines that will interconnent the facilities and alleviate current constraints in the NGL products and residue gas markets. Southcross Energy will have a total of 335 mmcfd of processing capacity and full utilization capacity of 17,300 bbls at its fractionators when the project is completed.

Boardwalk Adding 150 mmcfd Eagle Ford Processing Plant - Expands Gathering

Boardwalk Pipeline Partners has started a $180 million expansion. The Eagle Ford pipeline and midstream company plans to add 55 miles of 20" and 24" pipeline to its existing 340 mile gathering system, while adding a 150 mmcfd Flag City processing plant near Edna, TX. The expansion is supported by long-term fee-based agreements.  Anchor shippers include Statoil and Talisman, who operate a partnership that cuts through the core gas-condensate window in DeWitt County, Karnes County, LaSalle County, Live Oak County, and McMullen County.

Read more at bwpmlp.com

Frack Tank was a Disposal Tank - Pearsall Fire

The fire last week near Pearsall was the result of an explosion at a disposal facility. The fire was first reported as an explosion during a "frack job", but it was later correctly reported that it was a disposal facility that caught fire. I haven't heard an update on the injuries, so I'm assuming they were minor.

If you were near or involved, we'd love to hear your comments below.

You can watch a video of the fire at ksat.com and can read more at npr.org.