Enterprise, Energy Transfer Pull Plug On Proposed Gulf Coast Oil Pipeline

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Description

Canceled proposed JV for Double E crude oil pipeline that would provide up to 450,000 barrels per day of takeaway capacity from Cushing, OK to Houston.

Enterprise Products Partners LP, Houston, (NYSE: EPD) reports it has canceled a proposed joint venture with Energy Transfer Partners LP, Dallas, (NYSE: ETP) to develop and construct a 584-mile crude oil pipeline from Cushing, Okla. to Houston.

The proposed Double E crude oil pipeline would provide up to 450,000 barrels per day of takeaway capacity for crude oil currently stranded at the Cushing storage hub because of a lack of southbound pipeline infrastructure. The project would have offered shippers greater access to the Gulf Coast refining complex.

While the recently completed binding open commitment period generated significant shipper interest, Enterprise reports agreements with the capacity and terms necessary to commercially support the project as planned were not sufficient.

Enterprise plans to continue to work with potential shippers to secure additional support for the project.