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TEPPCO and Enterprise Complete Construction of Jonah Gas Gathering System Pipeline Expansion

Posted on: Wednesday, 29 November 2006, 15:01 CST

TEPPCO Partners, L.P. (NYSE:TPP) and Enterprise Products Partners L.P. (NYSE:EPD), through their Jonah Gas Gathering Company joint venture, today announced that a new pipeline looping project, constructed as part of the Phase V expansion of the Jonah Gas Gathering System, is now in service. One of the nation's largest in terms of natural gas volumes gathered, the Jonah Gas Gathering System is located in southwest Wyoming and serves producers in the prolific Jonah and Pinedale fields. The Phase V expansion project is ultimately expected to increase capacity of the system from 1.5 billion cubic feet per day (Bcf/d) of natural gas to 2.4 Bcf/d and reduce wellhead pressures in order to increase production rates, maximize recovery of reserves and generate incremental gathering fees.

The pipeline looping project is the first segment of the Phase V expansion and includes 75 miles of 36-inch diameter pipe and 12 miles of 24-inch diameter pipe that transport natural gas from the Jonah and Pinedale fields to processing plants and interstate pipelines near Opal, Wyoming. These new pipelines expand the gathering system's current capacity by 250 million cubic feet per day to 1.75 Bcf/d. Increasing the Phase V expansion capacity to 2.4 Bcf/d will require the installation of approximately 157,000 horsepower of compression, which is expected to be completed in phases beginning in April 2007 and concluding by the end of 2007.

"The completion of the pipeline looping project, which represents an important milestone in the Phase V expansion program, is particularly timely because the producers we serve now have additional gathering capacity to accommodate recent record production volumes, as well as expected future growth," said Jerry E. Thompson, president and chief executive officer of TEPPCO's general partner. "We are on track to complete the Phase V project as scheduled and realize the full 2.4 Bcf/d of capacity by the fourth quarter of 2007. With the completion of the pipeline expansion, we have nearly quadrupled capacity on the Jonah Gas Gathering System since TEPPCO purchased it in 2001."

Robert G. Phillips, Enterprise president and chief executive officer said, "This new gathering infrastructure supports increased natural gas production from the Jonah and Pinedale fields and provides additional supplies to Enterprise's Pioneer silica gel natural gas processing plant now in service and our Pioneer cryogenic natural gas processing facility, which is under construction and expected to be completed in the fourth quarter of 2007."

Located in the Greater Green River Basin of southwestern Wyoming, the Jonah Gas Gathering System presently serves over 1,100 wells through almost 700 miles of pipeline and is currently gathering approximately 1.5 Bcf/d of natural gas, which represents more than 85 percent of current production from the Jonah and Pinedale fields. The system, which also features four compressor stations that have a combined current capacity of 93,000 horsepower, provides access to four major interstate pipeline systems, including Northwest, Kern River, Colorado Interstate Gas and Questar.

The Jonah and Pinedale fields are ranked as the sixth and third largest natural gas fields, respectively, in the United States in terms of proved reserves reported to the Energy Information Administration. Annual volume growth in the Jonah and Pinedale fields has averaged more than 30 percent during the past five years and over 40 drilling rigs are currently active in the play.

TEPPCO Partners, L.P. is a publicly traded partnership with an enterprise value of approximately $4 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; and has ownership interests in Jonah Gas Gathering Company, Seaway Crude Pipeline Company, Centennial Pipeline LLC, Mont Belvieu Storage Partners, L.P. and an undivided ownership interest in the Basin Pipeline. Texas Eastern Products Pipeline Company, LLC, an indirect subsidiary of EPCO, Inc., is the general partner of TEPPCO Partners, L.P. For more information, visit TEPPCO's web site at www.teppco.com.

Enterprise Products Partners L.P. is one of the largest publicly traded energy partnerships with an enterprise value of approximately $17 billion, and is a North American provider of midstream energy services to producers and consumers of natural gas, NGLs and crude oil. Enterprise transports natural gas, NGLs and crude oil through more than 34,000 miles of onshore and offshore pipelines. Services include natural gas transportation, gathering, processing and storage; NGL fractionation (or separation), transportation, storage, and import and export terminaling; crude oil transportation and offshore production platform services. For more information, visit Enterprise on the web at www.epplp.com. Enterprise Products Partners L.P. is managed by its general partner, Enterprise Products GP LLC, which is wholly owned by Enterprise GP Holdings L.P. (NYSE:EPE), one of the nation's largest publicly traded GP partnerships with an enterprise value of approximately $3 billion. For more information on Enterprise GP Holdings L.P., visit its website at www.enterprisegp.com.

FORWARD LOOKING STATEMENTS

TEPPCO PARTNERS, L.P.

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Except for the historical information contained herein, the matters discussed in this news release, including, without limitation, those related to the cost, timing and completion of and prospects for the Jonah expansion, are forward-looking statements that involve certain risks and uncertainties. These risks and uncertainties include, among other things, market conditions, governmental regulations and factors discussed in TEPPCO Partners, L.P. filings with the Securities and Exchange Commission.

ENTERPRISE PRODUCTS PARTNERS L.P.

This press release contains various forward-looking statements and information that are based on Enterprise's beliefs and those of its general partner, as well as assumptions made by and information currently available to Enterprise. When used in this press release, words such as "anticipate,""project,""expect,""plan,""goal,""forecast,""intend,""could,""believe,""may," and similar expressions and statements regarding the plans and objectives of Enterprise for future operations, are intended to identify forward-looking statements. Although Enterprise and its general partner believe that such expectations reflected in such forward-looking statements are reasonable, neither Enterprise nor its general partner can give assurances that such expectations will prove to be correct. Such statements are subject to a variety of risks, uncertainties and assumptions. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, Enterprise's actual results may vary materially from those

Enterprise anticipated, estimated, projected or expected. Among the key risk factors that may have a direct bearing on Enterprise's results of operations and financial condition are:

fluctuations in oil, natural gas and NGL prices and production due to weather and other natural and economic forces;

a reduction in demand for its products by the petrochemical, refining or heating industries;

the effects of its debt level on its future financial and operating flexibility;

a decline in the volumes of NGLs delivered by its facilities;

the failure of its credit risk management efforts to adequately protect it against customer non-payment;

terrorist attacks aimed at its facilities; and,

the failure to successfully integrate its operations with assets or companies, if any that it may acquire in the future.

Enterprise has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Source: Business Wire

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