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Enterprise sees plant shut for days; may "significantly" cut Gulf oil supply

  • Enterprise Products Partners (NYSE:EPD) says it expects the Mississippi natural gas processing plant that shut after Monday's explosion and halted flows on a major natural gas pipeline will remain down for at least several days.
  • A prolonged outage threatens to raise energy prices by curbing production in the Gulf of Mexico, and comes as demand for natural gas to run power plants is picking up with summer heat spreading across the U.S.; the Gulf last year accounted for 16% of U.S. crude production and nearly 5% percent of gas output.
  • The pipeline disruption has the potential to “significantly” curb Gulf of Mexico crude supply should offshore platforms fail to find another place to send their gas, says Energy Aspects analyst Dominic Haywood, noting that the 10 platforms produced a combined 270K bbl/day in February; BP’s Na Kika and Thunder Horse platforms are considered especially at risk since they lack alternatives for gas.
  • EPD says its Pascagoula plant can process 1.5B cf/day of natural gas and was averaging ~400M before the blast.

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