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Enterprise Products Partners extends agreement with Ultra Petroleum

March 1, 2017 By    

Enterprise Products Partners renegotiated and extended an agreement with Ultra Petroleum Corp. to process natural gas from Ultra’s production in the Pinedale Field in southwestern Wyoming.

The agreement secures a 20-year supply of natural gas for Enterprise’s Pioneer cryogenic processing facility in Sublette County, Wyoming, according to the company. The Pioneer cryogenic natural gas processing facility has a total capacity of 750 million cu. ft. per day and can extract up to 36,000 barrels per day (bpd) of natural gas liquids (NGL). The Pioneer complex also includes a silica gel unit that can process 600 million cu. ft. per day of natural gas and extract up to 1,800 bpd of NGLs, sold as a condensate in the local market. Enterprise’s Mid-America Pipeline provides takeaway capacity for the NGLs extracted and offers access to markets along the Gulf Coast.

“We expect our Pioneer facility to operate at near full capacity for the next five to 10 years,” says A.J. “Jim” Teague, CEO of Enterprise’s general partner. “In addition to providing Enterprise with a long-term supply of NGLs for our integrated assets, the agreement further illustrates our commitment and capability to provide our customers with flow assurance and reliability from the wellhead to markets.”

The Ultra agreement is the second long-term contract Enterprise has executed with a Green River Basin producer in the last three months to supply incremental natural gas to the company’s Pioneer processing plant.

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About the Author:

Megan Smalley was an associate editor at LP Gas magazine.

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