Enterprise Products and Enbridge Propose Pipeline to Move Oil from Midwest to Gulf Coast (EPD, ENB)

Enterprise Products Partners LP (NYSE: EPD) and Enbridge Inc. (NYSE: ENB) have proposed the construction of a pipeline to move oil from Midwest to Gulf Coast.

Enterprise and Enbridge today announced that they are planning to design, construct and operate a new pipeline to transport crude oil from the oversupplied hub at Cushing, Oklahoma to the Texas Gulf Coast refining complex. The proposed pipeline will initially have the capacity to transport around 800,000 barrels per day of crude oil and accommodate the constrained medium-to-light crude oil stranded at Cushing right now.

The Wrangler Pipeline proposed by the two companies will be capable to handle additional supplies of crude oil arriving at Cushing from other North American producers. The pipeline will be designed in such a way that it can be easily expanded to accommodate any future increases in crude oil volume delivered to the Cushing area.

The proposed pipeline will extend approximately 500 miles southward to Enterprise’s ECHO crude oil shortage terminal in Harris County, Texas and will closely follow existing pipeline corridors. The pipeline will provide access to refineries in Texas City, Pasadena/Deer Park, Baytown and refineries along the Houston Ship Channel.

Michael A. Creel, President and CEO of Enterprise’s general partner, said that the company is extremely pleased to partner with Enbridge on an important project and believes that the complementary skills and shared strategic vision will help ensure success, and offer the most efficient and expedient solution for meeting the industry’s need for additional crude oil pipeline infrastructure.

Patrick D. Daniel, President and CEO of Enbridge, said that the Wrangler Pipeline will provide flexible solutions to shippers seeking to move crude oil out of the Cushing hub, solving the current lack of transportation options following recent changes in supply routes in North America.

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.