Energy Transfer Partners and Trafigura Beheer BV announced plans for a new 82-mile crude oil and condensate pipeline from the Eagle Ford to Corpus Christi, the company said Thursday.
The two companies signed an agreement for the pipeline, which will extend from McMullen County to the Gulf Coast and will include converting already existing natural gas pipelines owned by Energy Transfer.
The pipeline will be able to transport about 100,000 barrels of crude oil and condensate per day and will be operational within 12 months, the companies said.
It will provide access for Eagle Ford crude to Trafigura’s deep-water terminal in Corpus Christi, relieving some of the bottlenecks that increased production in the South Texas shale created.
Trafigura is also building a second deep-water dock, to provide additional capacity for tankers and barges docking at its facilities, as exports from the Gulf Coast continue to grow. The new dock is expected to be completed by the first quarter of 2014, the company said.
“Combining Energy Transfer’s pipeline assets with Trafigura’s facilities in Corpus Christi is an extremely efficient solution for Eagle Ford shale producers,” said Lee Hanse, Executive Vice President of Business Development for Energy Transfer Partners, in a written statement. “The repurposing of the existing natural gas pipeline also makes this a very timely solution for the growing supplies of crude oil and condensate in the area.”