Enterprise Products Partners (EPD.N) said it will team up with Anadarko Petroleum Corporation (APC.N) and DCP Midstream LLC to build a pipeline to transport natural gas liquids from the Denver-Julesburg basin to the Gulf Coast.
The 435-mile pipeline, called Front Range, has an initial capacity of 150,000 barrels per day (bpd) and will run from the DJ Basin in Weld County, Colorado to Skellytown, Texas in Carson County.
The capacity can be expanded to 230,000 bpd, the companies said in a statement.
Enterprise will construct and operate the pipeline, which is expected to begin service in the fourth quarter of 2013.
Oil and gas production from shale formations in the United States has surged, creating a scramble to build infrastructure to get supplies to refining hubs, especially the Gulf Coast, which is home to roughly half of the country's refining capacity.
(Reporting by Swetha Gopinath in Bangalore; Editing by Viraj Nair)