Enterprise Products Partners is eyeing the possibility of repurposing multiple U.S. pipelines to handle different commodities or flow in different directions as it curbs investment in new infrastructure, citing market uncertainty as the cause, reports S&P Global.
The potential move was disclosed March 4 by executives during a presentation to analysts. However, the company still plans to bring several additions on line during that timeframe, most notably the expansion of an ethane pipeline serving the petrochemical industry on the Gulf Coast and a gas pipeline that will deliver Haynesville production to LNG markets in Louisiana.
The prolific Permian Basin in West Texas and southeastern New Mexico remains a key market for Enterprise, supplying significant volumes of oil and gas to its pipeline system.
Kinder Morgan made a similar announcement in January, saying that it would look at whether any of its existing crude pipelines are underutilized and could be converted to handle gas instead. Kinder Morgan plans to invest $800 million in expansion projects and contributions to joint ventures this year. That compares with about $1.7 billion budgeted for 2020. See the full story.