Enterprise Products Partners (EPD) said Monday it expects its Midland-to-ECHO 3 and 4 Permian crude pipeline system expansions each will add roughly 450,000 barrels per day of additional capacity, Kallanish Energy reports.
Midland-to-ECHO 4 is further expandable up to 540,000 Bpd, Jim Teague, chief executive of Enterprise’s general partner, said on the company’s quarterly earnings call.
The Midland-to-ECHO 3 pipeline expansion is expected to be completed in the third quarter of 2020. The system transports crude from Midland, Texas, in the Permian Basin, to Enterprise’s ECHO terminal in Houston.
Oil production growth in the Permian has slowed in recent months as drillers reduce the number of oil rigs, focusing more on earnings growth instead of increased output.
“Our customers are large producers. I don’t see someone like Exxon or Chevron slowing down,” Teague said.
This post appeared first on Kallanish Energy News.