Enterprise acquires midstream assets in Eagle Ford region

June 1, 2015 By    

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.

About the Author:

Kevin Yanik is the senior editor of LP Gas Magazine. Contact him at kyanik@northcoastmedia.net or 216-706-3724.

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