NGL Pipelines Overview

Enterprise owns interests in 16,300 miles of NGL pipelines, 163.4 million barrels of working capacity of NGL and related product storage and two import/export facilities. These NGL pipelines transport mixed NGLs and other hydrocarbons from natural gas processing plants to fractionation plants, petrochemical plants and refineries; deliver propane to customers along the Dixie pipeline and certain sections of the Mid-America Pipeline System. Our pipelines provide transportation services to customers on a fee basis; therefore, the gross operating margin for this business is generally dependent upon the volume of product transported and the level of fees charged to customers. Typically, our pipeline customers retain title to the products transported by our NGL pipelines and the associated commodity price risk.

Enterprise's most significant NGL pipelines are the Mid-America and Seminole pipeline systems which total 9,178 miles. The Mid-America system covers thirteen states and is a regulated NGL pipeline system consisting of three NGL pipelines: the 2,793-mile Rocky Mountain pipeline, the 2,773-mile Conway North pipeline and the 2,266-mile Conway South pipeline.

The Rocky Mountain section of the pipeline transports mixed NGLs from the Rocky Mountain Overthrust and San Juan Basin areas to the Hobbs NGL hub Located on the Texas-New Mexico border. The Conway North segment links the large NGL hub at Conway, Kansas to refineries, petrochemical plants and propane markets in the upper Midwest. In addition, the Conway North segment has access to NGL supplies from Canada's Western Sedimentary basin through third-party connections. The Conway South pipeline connects the Conway hub with Kansas refineries and transports NGLs to and from Conway to the Hobbs hub.  The Mid-America Pipeline System interconnects with our Seminole Pipeline and Hobbs NGL fractionator and storage facility at the Hobbs hub.

During 2009, approximately 50% of the volumes transported on the Mid-America Pipeline System were mixed NGLs originating from natural gas processing plants.  The remaining volumes consisted of purity NGL products originating from NGL fractionators located in Kansas, Oklahoma and Texas, as well as deliveries from Canada.

The Seminole pipeline is a regulated pipeline that transports NGLs from the Hobbs hub and the Permian Basin area of west Texas to markets in southeastern Texas. The primary source of throughput for Seminole is the volume originating from the Mid-America Pipeline system.

The following table summarizes the significant NGL pipelines and related storage assets of our NGL Pipelines & Services business segment at February 1, 2010. 

(1) We hold a 90% interest in this system through a majority owned subsidiary, Seminole Pipeline Company (“Seminole”).

 (2) The ownership interest presented reflects consolidated ownership of these systems by EPO (34%) and Duncan Energy Partners (66%).

(3) The Chaparral NGL system includes the 180-mile Quanah Pipeline.  The Quanah Pipeline begins in Sutton County, Texas and connects to the Chaparral Pipeline near Midland, Texas.

(4) Of the 827 total miles for this system, we own 100% of 774 miles and 52.5% of the remaining 53 miles.

(5) Our ownership interest in this pipeline is held indirectly through our equity method investment in Skelly-Belvieu Pipeline Company, which we acquired in December 2008.

(6) Our ownership interest in this pipeline is held indirectly through our equity method investment in K/D/S Promix LLC.

(7) We hold a 70% interest in this system through a majority owned subsidiary, Rio Grande Pipeline Company (“Rio Grande”).  We acquired our ownership interest in Rio Grande in December 2009.

(8) Includes our Tri-States, Belle Rose, Wilprise, Chunchula, Bay Area and South Dean pipelines located in the coastal regions of Alabama, Louisiana, Mississippi and Texas; Port Arthur, Wilcox, Panola and San Jacinto located in East Texas; and our Meeker pipeline in Colorado.