Midland-to-ECHO Pipeline System

From Global Energy Monitor
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Midland-to-ECHO 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

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

Background

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, June 4, 2020
  2. 2.0 2.1 2.2 "Enterprise abandons Texas pipeline project as oil prices remain weak", Reuters, Sep. 9, 2020
  3. The Growing Web of Oil and Gas Pipelines FracTracker, February 28, 2019

External resources

External articles