Houston-based Enterprise Products Partners said this week it has cancelled its Midland-to-ECHO 4 crude oil pipeline (M2E4) to markets in the Houston area. EPP amended long-term agreements with customers to reduce the volume of near-term shipping commitments in exchange for extending terms of the agreements. EPP said Wednesday the agreements will allow Enterprise to use the partnership’s existing Permian-to-Gulf Coast crude oil systems to support its crude oil transportation agreements. The cancellation of M2E4 (450,000 b/d on startup in 2021) will reduce EPP’s growth capital expenditures for 2020-22 by $800 million.
A.J. (Jim) Teague, co-CEO, said, “This is another example of Enterprise working with customers for a win/win solution that allows our customers and Enterprise to better allocate capital during the challenging times of the current economic cycle while retaining long-term, fee-based volumes and revenues for our assets.”