Natural Gas Processing

Natural Gas Processing Assets

Enterprise owns 23 natural gas processing plants located in Texas, Louisiana, Mississippi and New Mexico. Eleven of these were acquired in connection with the GulfTerra merger. These facilities can be categorized as either straddle plants, located on mainline natural gas pipelines owned by Enterprise or by third parties, or field plants that process natural gas through associated gathering systems. The partnership's 11 facilities in Louisiana and Mississippi are situated on the major pipelines transporting natural gas from the continental shelf and deepwater areas of the Gulf of Mexico. Our 10 plants in Texas process natural gas produced from the south Texas, Permian and east Texas regions that is primarily transported through our Texas Intrastate pipeline system. Enterprise owns 2 plants in New Mexico including our large Chaco plant which is integrated with our 5,400-mile San Juan gathering system that gathers over 1 Bcf of natural gas per day.

In general, natural gas produced at the wellhead contains varying amounts of NGLs. This "rich" natural gas in its raw form is usually not acceptable for transportation in the nation's major natural gas pipeline systems or for commercial use as a fuel. Natural gas production from the deepwater Gulf of Mexico and the Rocky Mountains, thus far, has generally been rich in NGLs and typically must be processed to remove NGLs to meet pipeline quality specifications. Deepwater natural gas production can contain in excess of 4 gallons of NGLs per Mcf of natural gas as compared to 1 to 1.5 gallons of NGLs per Mcf of natural gas produced from the continental shelf areas of the Gulf of Mexico. Gas produced along the Texas Gulf coast typically contains 2-3 gallons of NGLs per Mcf. Natural gas processing plants remove the NGLs from the natural gas stream.

On an energy equivalent basis, NGLs generally have a greater economic value as a raw material for petrochemicals and motor gasoline than their value as components of the natural gas stream.

Enterprise restructured its natural gas processing contract portfolio in 2003 and 2004 resulting in the producer assuming all or most of the commodity price risk between NGLs and natural gas. At December 31, 2004, approximately 91% of the natural gas volumes were processed under contracts with a fee-based or in-kind fee component.

In January 2005, we purchased Teco Gas Processing, LLC from El Paso, which provided us with an indirect 75% interest in the Indian Springs natural gas processing facility. This east Texas facility has the capacity to process up to 120 MMcf/d of natural gas. In addition, there is an idle 20 MMcf/d processing train available to support increases in natural gas volumes. The natural gas processed at the Indian Springs processing facility is sourced from the Indian Springs Gathering System, which we acquired in the same transaction, as well as our nearby Big Thicket Gathering System. NGLs from this facility are transported to Mont Belvieu for fractionation.

Over the next two years we are expecting new streams of rich natural gas production from the Southern Green Canyon, Thunder Horse and other developments in the deepwater Gulf of Mexico. These developments should produce a significant amount of NGLs that will be removed at our natural gas processing plants and most will also utilize our downstream pipeline, fractionation, storage and distribution facilities before reaching the end-use market.

Gas Processing Facility	Company Ownership Interest in Facility ⁽¹⁾	Gross Gas Processing Capacity (Bcf/day)	Offshore Pipelines Served	Connections to Onshore Pipelines
Gulf Coast Plants
Yscloskey, LA	29.4%	1.85	Garden Banks, Viosca Knoll, Tennessee	Tennessee
Calumet, LA	31.5%	1.60	Manta Ray, ANR, Trunkline, Garden Banks	ANR, Trunkline
North Terrebonne, LA	44.3%	1.30	Manta Ray, Transco, Garden Banks	Transco
Venice, LA	13.1%	1.30	Mississippi Canyon, Texas Eastern, Venice Gathering System	Texas Eastern, Columbia Gulf, Gulf South
Toca, LA	60.3%	1.10	SONAT, Viosca Knoll, Mississippi Canyon	SONAT
Pascagoula, MS	40.0%	1.50	Destin, Viosca Knoll, Okeanos	Transco, Tennessee, Florida Gas, SONAT, Gulf South
Sea Robin, LA	15.5%	0.95	Garden Banks, Sea Robin Pipeline	Henry Hub, Columbia Gulf, SONAT, LRC, Sabine, Gulf South, Texas Gas
Blue Water, LA	7.4%	0.95	Blue Water, Garden Banks	Tennessee, Columbia Gulf
Iowa, LA	2.0%	0.50	Texas Eastern	Texas Eastern
Neptune, LA	66.0%	0.65	Manta Ray, Nautilus	Acadian Gas, Cypress Gas, Texas Gas, Tennessee, Gulf South, LIG
Burns Point, LA	50.0%	0.16	Gulf South, Quivera	Gulf South
Gas Processing Facility	Company Ownership Interest in Facility ⁽¹⁾	Gross Gas Processing Capacity (Bcf/day)	Producing Regions	Connections to Onshore Pipelines
Western U.S. Treating Plants
Chaco, NM (Processing)	100%	0.65	San Juan Basin	EPNG
Indian Basin, NM	42.3%	0.24	Permian Basin	NGPL\DFS\GTFS
Gas Processing Facility	Company Ownership Interest in Facility ⁽¹⁾	Gross Gas Processing Capacity (Bcf/day)		Connections To Onshore Pipelines
Texas Plants
Armstrong ⁽²⁾	100%	0.25		Texas Intrastate Pipeline System
Delmita ⁽²⁾	100%	0.15		"
Gilmore ⁽²⁾	100%	0.26		"
Matagorda ⁽²⁾	100%	0.25		"
San Martin⁽²⁾	100%	0.20		"
Shilling ⁽²⁾	100%	0.11		"
Shoup ⁽²⁾	100%	0.29		"
Sonora ⁽²⁾	100%	0.10		"
Thompsonville ⁽²⁾	100%	0.30		"
Indian Springs ⁽³⁾	75%	0.12		Indian Springs and Big Thicket Gathering Systems
Total Gross Processing Capacity		14.78
Total Net Processing Capacity		6.34 ⁽⁴⁾

⁽¹⁾We own direct consolidated interests in all of our natural gas processing facilities with the exception of Venice, which is part of our equity investment in VESCO.
⁽²⁾We acquired ownership interest in these facilities as a result of the GulfTerra Merger.
⁽³⁾We acquired our indirect ownership in this facility from El Paso in January 2005.
⁽⁴⁾The approximate net natural gas processing capacity does not necessarily correspond to our ownership interest in each facility. It is based on a variety of factors including volumes processed at facility, ownership interest, contractual arrangements and other factors.

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