Enterprise Busy With Pipelines – Analyst Blog

A portion of a 36-inch natural gas pipeline in north Texas, belonging to Enterprise Products Partners LP (EPD), was shut down after it exploded on Monday. Electrical personnel were trying to fix power line poles and accidentally punctured a natural gas pipeline, generating the explosion. According to company officials, the explosion has killed one person and wounded many.

 

The 36-inch pipeline, owned by Enterprise’s Texas intrastate pipeline system, stretches from West to East Texas. The system includes 8,051 miles of pipeline and can transport 6.6 billion cubic feet of gas a day. The system transports gas from the Texas supply basin to local distribution companies and electrical generators.

 

According to the company spokesman Ricky Rainey, a control room identified the leakage point in the line near Cleburne and the fire was controlled within two hours after the explosion. The fire check was possible as the 36-inch line was equipped with valves that automatically shut down gas to that section of the pipe.

 

Enterprise also announced the beginning of commercial operations in its refined products storage facility in Port Arthur, Texas. The facility was constructed to support the expansion of Motiva Enterprises LLC’s nearby refinery and serves as the sole distribution point for output as part of a 15-year throughput and volume dedication agreement.

 

The $300 million storage facility comprises 20 storage tanks with 5.4 million barrels of capacity for gasoline, diesel and jet fuel. In addition, five pipelines − each five and a half miles in length − engage in the transportation of various products from the refinery to the storage site.

 

The storage facility aids economic growth by generating employment in the region and provides supply assurance for the company’s refined products pipeline network serving the Gulf Coast, Midwest and northeast U.S. markets.

 

We believe Enterprise Products Partners exhibits a strongly competitive position that is enhanced by a diverse asset base and compelling organic growth profile. We also believe that the company’s financial position will spark organic growth opportunities that will expand its integrated system. However, we remain cautious on the explosion that has resulted in a casualty and has raised an alarm for ecological hazards.