Enterprise serves as operator and BP retains its 30% ownership stake in the natural gas liquids (NGL) pipeline, which originates near Odessa, Texas, in Ector County. The 265-mile, 8-inch diameter pipeline transports primarily butane/propane mix to a Pemex-owned interconnect at the Mexican border south of El Paso. From that point, Pemex transports the NGLs to its Mendez Terminal near Juarez, Mexico, for distribution to consumers.
Michael Creel, president and CEO of Enterprise, said: “This transaction serves as yet another strong example of our ability to capitalize on the opportunities created by our integrated midstream energy network to efficiently provide value-added services for customers and accretive cash flow for Enterprise investors. The acquisition is supported by firm transportation contracts and gives us direct access to growing end-user markets for home heating and cooking fuel.”
All of the NGLs currently being delivered into the Rio Grande Pipeline originate from Enterprise’s Mid-America Pipeline system and are fractionated at Hobbs in Gaines County, Texas. Presently, the Rio Grande Pipeline has the capacity to transport as much as 25,000 barrels per day of NGLs.
