Enterprise Products Partners L.P. (NYSE: EPD) and Apache Corporation (NYSE and NASDAQ: APA) executed a long-term agreement, in which Apache is committing 100 percent of its Alpine High natural gas liquids (“NGLs”) to Enterprise.
Apache has 336,000 net acres in its Alpine High discovery in the Delaware Basin. Enterprise has committed to accept a minimum of 205,000 barrels per day of NGLs from Apache.
Enterprise is constructing the 658-mile Shin Oak pipeline from Reeves County to Enterprise’s NGL fractionation and storage complex in Mont Belvieu, Texas. The pipeline is expected to have an initial capacity of 550,000 BPD and is scheduled to be completed in the second quarter of 2019. Apache has an option for a 33 percent equity stake in the Shin Oak pipeline, which is exercisable after the in-service date.
“We are excited to announce our long-term agreements with Apache to support their development of the prolific Alpine High region,” said A.J. “Jim” Teague, chief executive officer of Enterprise’s general partner.
“Alpine High is an enormous hydrocarbon resource that encompasses rich gas, dry gas and oil-bearing horizons. This agreement provides an efficient long-term outlet for the tremendous volume of NGLs that Apache plans to produce from the rich gas window of the play,” Teague said.
