Midland-to-ECHO Pipeline System

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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Midland-to-ECHO (M2E) Pipeline System was a proposed oil pipeline in Texas, United States.[1] Enterprise Product Partners cancelled the pipeline project in September 2020.[2]

Location

The pipeline was to run from Midland, Texas to the ECHO Oil Terminal near Houston, Texas.[1][3]

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Project details

Midland-to-ECHO 1 (M2E 1)

  • Owner: Enterprise Product Partners[1]
  • Capacity: 620,000 barrels per day[4]
  • Length: 669.5 km / 416 miles[4]
  • Diameter: 24-inches[4]
  • Status: Operating[4]
  • Start Year: 2018[4]

Midland-to-ECHO 1 (M2E 1) expansion

  • Owner: Enterprise Product Partners[1]
  • Capacity: 45,000 barrels per day[4]
  • Length:
  • Diameter: 24-inches[4]
  • Status: Operating[4]
  • Start Year: 2019[4]

Midland-to-ECHO 3 (M2E 3)

  • Owner: Enterprise Product Partners[5]
  • Capacity: 450,000 barrels per day[5]
  • Length:
  • Diameter:
  • Status: Operating[5]
  • Start Year: 2020[5]

Midland-to-ECHO 4 (M2E 4)

  • Owner: Enterprise Product Partners[5]
  • Capacity: 450,000 barrels per day[5]
  • Length:
  • Diameter:
  • Status: Cancelled[2][5]
  • Start Year: 2021[1]

Background

Midland-to-ECHO 1 (M2E 1) & the M2E 1 expansion

The pipelines connects with Enterprise's Rancho II Oil Pipeline in Sealey, Texas to deliver crude oil into the ECHO oil terminal storage and greater Houston market.[4]

The project was announced in April 2015 with a capacity of 300,000 barrels per day (bpd) and a projected in-service date of 2Q 2017. The capacity was eventually expanded to 450,000 bpd, but with an in-service date in 2Q 2018. The project eventually entered full service in May 2018 with a new expanded capacity of 575,000 bpd. In March 2019, the capacity expanded by another 45,000 bpd to a total of 620,000 bpd.[4]

Midland-to-ECHO 3 (M2E 3)

M2E 3 entered service in the third quarter of 2020.[5]

Midland-to-ECHO 4 (M2E 4)

According to June 2020 data from the U.S. Energy Information Administration (EIA), the pipeline was to run from Midland, Texas to the ECHO Oil Terminal in Houston, Texas.[1]

In May 2020, Enterprise Product Partners announced that it was deferring the project by six months and that it is now expected to start in the second half of 2021. Its initial capacity will be 450,000 barrels per day, but is expandable to 540,000 barrels per day. The pipeline's final length and diameter are unknown.[1]

In September 2020, Enterprise Product Partners announced the project's cancellation saying that by so doing it would save approximately US$800 million in capital expenditure for 2020, 2021 and 2022. The decision was said to be connected to U.S. oil producers slashing output to cope with oil prices below US$40 a barrel and to excess Permian Basin pipeline capacity at these production levels. Previously deemed 'not cancelable' by an Enterprise company official, the project's cancellation surprised industry analysts as Enterprise had contracts in place for the pipeline with oil shippers.[2]

Articles and resources

References

  1. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 Petroleum & Other Liquids, Movements, Energy Information Administration, Jun. 4, 2020, accessed Aug. 17, 2021.
  2. 2.0 2.1 2.2 "Enterprise abandons Texas pipeline project as oil prices remain weak", Reuters, Sep. 9, 2020, accessed Aug. 17, 2021.
  3. The Growing Web of Oil and Gas Pipelines FracTracker, Feb. 28, 2019, accessed Aug. 17, 2021.
  4. 4.00 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Midland to ECHO I, RBN Energy, accessed Aug. 17, 2021.
  5. 5.0 5.1 5.2 5.3 5.4 5.5 5.6 5.7 U.S. liquids pipeline projects, Energy Information Administration, Jun. 7, 2021, accessed Aug. 17, 2021.

External resources

External articles