Copano Energy, L.L.C. and Magellan Midstream Partners, L.P. formed a joint venture to deliver Eagle Ford Shale condensate to Corpus Christi, TX.
The 50/50 joint venture, known as Double Eagle Pipeline LLC, will construct and own 140 miles of pipeline to connect an existing 50-mile pipeline segment owned by Copano to Karnes, Live Oak, McMullen and LaSalle counties in Texas, enabling delivery of condensate to Magellan’s terminal in Corpus Christi. Initial capacity of the pipeline will be 100,000 bpd. Double Eagle also will construct a new truck unloading facility along the pipeline near Three Rivers for deliveries of condensate destined for Corpus Christi.
The joint venture project is supported by long-term customer commitments from Talisman Energy USA Inc. and Statoil Marketing and Trading (US) Inc., major producers with significant acreage in the Eagle Ford Shale. The expected cost of the new joint venture facilities is $150 million. Copano will oversee construction of the pipeline and serve as operator. The companies expect to provide limited services by the end of 2012 with full service available early in 2013.
In connection with the joint venture, Copano will convert its 50-mile pipeline from natural gas to condensate service, and Magellan will make enhancements to its Corpus Christi terminal, including construction of 500,000 barrels of new dedicated condensate storage and a dedicated dock delivery pipeline.