Enterprises Independence Hub Departs South Texas for Installation in Deepwater Gulf of Mexicoadmin
Enterprise Products Partners L.P. announced that the Independence Hub production platform set sail today from Corpus Christi, Texas, for a five-day trip to Mississippi Canyon Block 920 where it will be installed. The hub, which is owned 80 percent by Enterprise and 20 percent by Helix Energy Solutions Group, Inc., will be located approximately 150 miles southeast of Venice, Louisiana, in about 8,000 feet of water, the deepest to date for an offshore platform.
“The Independence Hub represents one of the most innovative and well coordinated solutions ever for economically developing significant Gulf of Mexico natural gas reserves that would otherwise have remained stranded,” said Bob Phillips, Enterprise president and chief executive officer. “The sail away brings us closer to completing this important infrastructure project, which has the capacity to increase natural gas production from the Gulf of Mexico by 1 billion cubic feet per day.”
The topsides, which were constructed in Corpus Christi, feature equipment capable of providing processing, compression and measurement services. In September of 2006, the topsides were integrated with the hull, which was built in Singapore, creating the Gulf of Mexico’s largest offshore natural gas production platform as measured by production capacity.
Mechanical completion of the platform at the installation site is expected by mid-March of 2007, at which time the Independence Hub platform will begin to earn annual fixed demand fees of approximately $55 million, or $44 million to Enterprise’s ownership interest. Natural gas production into the hub is scheduled to begin in the second half of 2007. Once production commences, in addition to the demand fees, the platform and the associated 134-mile Independence Trail natural gas pipeline, which is 100 percent owned by Enterprise, will generate incremental gross operating margin net to the partnership of approximately $17 million per year from volumetric fees for each 100 million cubic feet per day of production.
Phillips added, “With additional discoveries and multiple prospects in the nearby areas accessible to the Independence Hub, and the potential exploration opportunities from opening up Lease Area 181 in the eastern Gulf of Mexico, Enterprise is well positioned to capitalize on future development of natural gas reserves in the deepwater region.”
Enterprise Products Partners L.P. is one of the largest publicly traded energy partnerships with an enterprise value of approximately $18 billion, and is a North American provider of midstream energy services to producers and consumers of natural gas, NGLs and crude oil. Enterprise transports natural gas, NGLs and crude oil through more than 34,000 miles of onshore and offshore pipelines. Services include natural gas transportation, gathering, processing and storage; NGL fractionation (or separation), transportation, storage, and import and export terminaling; crude oil transportation and offshore production platform services. For more information, visit Enterprise on the web at www.epplp.com. Enterprise Products Partners L.P. is managed by its general partner, Enterprise Products GP LLC, which is wholly owned by Enterprise GP Holdings L.P. (NYSE:EPE – News), one of the nation’s largest publicly traded GP partnerships with an enterprise value of approximately $3 billion. For more information on Enterprise GP Holdings L.P., visit its website at www.enterprisegp.com.
This press release contains various forward-looking statements and information that are based on Enterprise’s beliefs and those of its general partner, as well as assumptions made by and information currently available to Enterprise. When used in this press release, words such as “anticipate,” “project,” “expect,” “plan,” “goal,” “forecast,” “intend,” “could,” “believe,” “may,” and similar expressions and statements regarding the plans and objectives of Enterprise for future operations, are intended to identify forward-looking statements. Although Enterprise and its general partner believe that such expectations reflected in such forward-looking statements are reasonable, neither Enterprise nor its general partner can give assurances that such expectations will prove to be correct. Such statements are subject to a variety of risks, uncertainties and assumptions. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, Enterprise’s actual results may vary materially from those Enterprise anticipated, estimated, projected or expected. Among the key risk factors that may have a direct bearing on Enterprise’s results of operations and financial condition are:
* fluctuations in oil, natural gas and NGL prices and production due to weather and other natural and economic forces; * the effects of our debt level on its future financial and operating flexibility; * a reduction in demand for our products by the petrochemical, refining or heating industries; * a decline in the volumes of NGLs delivered by our facilities; * the failure of its credit risk management efforts to adequately protect us against customer non-payment; * terrorist attacks aimed at our facilities; and,
* the failure to successfully integrate our operations with any companies that we may acquire in the future, if any.
Enterprise has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Enterprise Products Partners L.P., Houston Media Relations: Rick Rainey, 713-381-3635 or Investor Relations:
Randy Burkhalter, 713-381-6812 or 866-230-0745
Source: Enterprise Products Partners L.P.