TEPPCO Affiliate Begins Open Season for Proposed Expansion of Chaparral Pipeline
TEPPCO Partners, L.P. (NYSE:TPP) affiliate, Chaparral Pipeline Company, LLC, today announced the start of a binding open season to seek shipper support for a proposed expansion of its 845-mile natural gas liquids (NGL) pipeline originating in the Permian Basin of West Texas and eastern New Mexico. The Chaparral pipeline delivers NGLs to the world’s largest NGL fractionation complex in Mont Belvieu, Texas.
The expansion project is designed to increase annual average system capacity by approximately 15,000 barrels per day (BPD) or 20,000 BPD, depending on shipper response to the open season. The expansion would involve upgrading certain pipe sections, and may include installing additional pumping capability at existing pump stations. If there is sufficient shipper commitment, the additional capacity could be available as soon as early 2009.
The open season will begin February 11, 2008, at 12 noon CST and continues until 12 noon CDT March 27, 2008. By April 30, 2008, Chaparral will notify shippers who have submitted an executed Transportation Services Agreement whether or not the expansion project will proceed.
Additional details, including a Notice of Open Season and a form of Transportation Services Agreement, are available on the TEPPCO web site (www.teppco.com). Interested shippers may also contact John Medler in TEPPCO’s Midstream Commercial department at (713) 381-8723 or jrmedler@teppco.com.
TEPPCO Partners, L.P. is a publicly traded partnership with an enterprise value of more than $5.5 billion, which conducts business through various subsidiary operating companies. TEPPCO owns and operates one of the largest common carrier pipelines of refined petroleum products and liquefied petroleum gases in the United States; owns and operates petrochemical and natural gas liquid pipelines; is engaged in transportation, storage, gathering and marketing of crude oil; owns and operates natural gas gathering systems; owns and operates a marine transportation business for refined products, crude oil and lube products; and has ownership interests in Jonah Gas Gathering Company, Seaway Crude Pipeline Company, Centennial Pipeline LLC, and the Basin Pipeline. Texas Eastern Products Pipeline Company, LLC, the general partner of TEPPCO Partners, L.P., is owned by Enterprise GP Holdings L.P. (NYSE:EPE), which also owns the general partner of Enterprise Products Partners L.P. (NYSE: EPD). For more information, visit TEPPCO’s Web site.
This news release includes forward-looking statements. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties, such as the partnership’s expectations regarding the future success of our expansion projects or results of operations. These risks and uncertainties include, among other things, insufficient cash from operations, market conditions, governmental regulations and factors discussed in TEPPCO Partners, L.P. filings with the Securities and Exchange Commission. If any of these risks or uncertainties materializes, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those expected. The partnership disclaims any intention or obligation to update publicly or reverse such statements, whether as a result of new information, future events or otherwise.