This month, construction projects are focused on serving up capacity to producers for red hot shale play take-away. Currently, areas with increased production include the Eagle Ford, Bakken and Permian Basin. In fact, about 195 rigs are presently working in the Eagle Ford as of the end of third-quarter 2011, compared to about 105 rigs in third-quarter 2010, which is a staggering amount of growth considering the time frame.

To help ease this midstream appetite, Enterprise Products Partners LP has served up several new construction projects that will extend and expand its natural gas and natural gas liquids infrastructure to accommodate production growth from the Eagle Ford shale play. Enterprise plans to build an additional 300 million cubic feet (MMcf) per day train at its Yoakum cryogenic natural gas processing facility in Lavaca County, Texas.

Enterprise is also constructing 62 miles of 24-inch diameter and 30-inch diameter pipeline loops in addition to increasing horsepower compression to gather and transport 300 MMcf per day of Eagle Ford shale gas. This expansion is expected to begin service in first-quarter 2013.

Enbridge Energy Partners LP recently announced plans to spend $145 million to expand its North Dakota crude oil system, marking the latest in a series of expansion projects.

The latest project will expand capacity into its Berthold terminal by 80,000 barrels (bbl.) per day, and will include a rail car loading facility at the terminal to accommodate additional volume. Following an initial 10,000 bbl. per day start-up in July 2012, the full 80,000 bbl. per day of rail export capacity is scheduled to be in-service by early 2013. Enbridge currently has contractual commitments for about 70% of the rail loading capacity and expects to finalize agreements for the remaining capacity in the next few months.

Also, Kinder Morgan Energy Partners LP announced plans to spend about $210 million to build seven crude oil storage tanks. The new tanks will add up to 2.4 million bbl. of crude and condensate capacity at its Edmonton Terminal in Strathcona County, in Alberta, Canada. The new capacity is anticipated to become available in late 2013. This project is in anticipation of increased oil-sands production from Canada. The project will set the framework for two additional phases that would ultimately allow for up to 6 million bbl. of dedicated storage.

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