Enterprise acquires midstream assets in Eagle Ford region

Enterprise Products Partners LP acquired EFS Midstream LLC from affiliates of Pioneer Natural Resources Co. and Reliance Industries Ltd. for $2.15 billion.

According to a press release, EFS Midstream provides gas gathering, treating, compression and condensate processing services in the Eagle Ford Shale. The EFS Midstream system features about 460 miles of natural gas-gathering pipelines, 10 central gathering plants, 780 million cubic feet per day of natural gas-treating capacity and 119,000 barrels per day of condensate-stabilization capacity.

Under the terms of the agreements, the Pioneer and Reliance joint development will dedicate its Eagle Ford Shale acreage to Enterprise under a 20-year, fixed-fee gathering agreement that includes a minimum volume requirement for the first seven years. Pioneer and Reliance will also dedicate their Eagle Ford Shale acreage under related 20-year fee-based agreements with Enterprise for natural gas processing, natural gas liquids transportation and fractionation, and for natural gas, processed condensate and crude oil transportation services.