Enterprise, Enbridge plan pipeline

Enterprise Products Partners L.P. (EPD) and Enbridge Inc. have announced plans to design, construct and operate a new pipeline to transport crude oil from the oversupplied hub at Cushing, Oklahoma, to the Texas Gulf Coast refining complex. To start, the Wrangler Pipeline will have the capacity to transport up to 800,000 barrels per day (BPD) of crude oil. This will accommodate the constrained medium-to-light crude oil presently stranded at Cushing and priced at a significant discount to the oil imports that account for the majority of the supply being used by Gulf Coast refiners. The pipeline will also have the capacity to handle additional supplies of crude oil arriving at Cushing from other North American producers. The joint venture partners will design the pipeline to be easily expanded in anticipation of future increases in crude oil volumes delivered to the Cushing area. The proposed 36in diameter pipeline will originate at the existing Enbridge Cushing Terminal and extend approximately 500mi southward, closely following existing pipeline corridors, to Enterprise’s ECHO crude oil storage terminal in southeast Harris County, Texas. This will allow access to refineries in Texas City, Pasadena/Deer Park, Baytown and along the Houston Ship Channel. New storage tankage required for pipeline operations will be located at the ECHO site and included in the joint venture. The project will also include a new 85mi pipeline to the Beaumont/Port Arthur refining center.

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