American Midstream, Targa Announce Cayenne Pipeline Joint Venture

American Midstream Partners, LP (AMID) has entered into a joint venture agreement with Targa Midstream Services LLC to create Cayenne Pipeline, LLC. Cayenne will transport Y-grade NGLs from the Targa-operated Venice Energy Services Company, LLC gas processing plant to Enterprise Products Partners’ pipeline at Toca, Louisiana, for delivery to Enterprise Products Partners’ Norco Fractionator.
As part of the Cayenne joint venture, AMID is contributing an underutilized natural gas pipeline that will convert into high value, natural gas liquids service. The project is supported by a 15-year dedication for all NGL production from Targa’s 750 MMcf/d Venice plant with inlet from six offshore pipelines in the Gulf of Mexico, including the prolific deep-water Mississippi Canyon area. The pipeline will have initial capacity of over 40,000 barrels per day with the ability to throughput more than 50,000 barrels per day. AMID and Targa will each have 50% economic interests and 50% voting rights, respectively, with Targa serving as the operator of the venture. The costs of conversion and associated construction will be shared equally by AMID and Targa.
The project has received necessary change of service permits and is expected to be fully operational by year-end 2017.
“Formation of Cayenne is another step in executing our strategy of linking off-shore gas supply to on-shore demand,” said Lynn Bourdon III, President and Chief Executive Officer, AMID. “The project will benefit the offshore producer community while driving a significant increase in the value of a pipeline by altering its service. We are also pleased to have a world class operating partner in Targa involved with this project.”
Related News
Related News

- Kinder Morgan Proposes 290-Mile Gas Pipeline Expansion Spanning Three States
- Three Killed, Two Injured in Accident at LNG Construction Site in Texas
- Tallgrass to Build New Permian-to-Rockies Pipeline, Targets 2028 Startup with 2.4 Bcf Capacity
- TC Energy Approves $900 Million Northwoods Pipeline Expansion for U.S. Midwest
- U.S. Moves to Block Enterprise Products’ Exports to China Over Security Risk
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- Enbridge Adds Turboexpanders at Pipeline Sites to Power Data Centers in Canada, Pennsylvania
- Great Basin Gas Expansion Draws Strong Shipper Demand in Northern Nevada
- Cheniere Seeks FERC Approval to Expand Sabine Pass LNG Facility
- Heath Consultants Exits Locate Business to Expand Methane Leak Detection Portfolio
Comments