American Midstream Partners LP (AMID) announced that the company completed and commenced deliveries on the Cayenne Pipeline joint venture between AMID and Targa Resources Corp.
Cayenne will initially have 40,000 barrels per day of Y-grade NGL transport capacity with the ability to expand to more than 50,000 barrels per day. Cayenne will originate from the Targa Resources-operated Venice gas processing plant and deliver to fractionation in Southern Louisiana.
The commencement of Cayenne provides AMID with strategic transport capabilities for the majority of all NGL volume out of Gulf of Mexico’s deep-water Mississippi Canyon region where AMID has developed an integrated gathering and transportation network. Cayenne is supported by a 15-year dedication for all NGL production from Targa Resource’s 750 MMcf/d Venice plant with inlet from six offshore Gulf of Mexico pipelines.
“The commencement of Cayenne demonstrates AMID’s ability to react to market demand and simultaneously execute on highly attractive commercial opportunities,” says Lynn Bourdon III, president and CEO. “Cayenne not only benefits offshore producers with a substantial increase in NGL take away capacity, but also creates meaningful value to AMID by taking an underutilized pipeline and altering its services into a strategic project.”
AMID’s assets are strategically located in some of the most prolific offshore and onshore basins in the Permian, Eagle Ford, East Texas, Bakken and Gulf Coast. AMID owns or has an ownership interest in approximately 5,100 miles of interstate and intrastate pipelines, as well as ownership in gas processing plants, fractionation facilities, an offshore semisubmersible floating production system with nameplate processing capacity of 100 MBbl/d of crude oil and 240 MMcf/d of natural gas; and terminal sites with approximately 6.7 MMBbls of storage capacity.Tags: American Midstream, AMID, Cayenne Pipeline, Targa Resources Corp.