*

US shale producers continue to restrain production growth

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Companies such as Enbridge ( ENB ) expand capacity on existing

lines

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Deepwater oil export projects struggle to attract

customers

(Changes headline; recasts throughout to include second

pipeline executive's comments, deepwater projects)

By Arathy Somasekhar

HOUSTON, Oct 24 (Reuters) - Top executives of two U.S.

energy pipeline operators on Thursday ruled out seeking new

crude oil lines built to move volumes out of the Permian shale

field in West Texas because of tepid volume growth and

difficulties constructing new lines.

A wave of consolidation in the top U.S. shale field has

concentrated output in the hands of companies that are promising

to restrain output so as not to crash prices by over-producing.

Pipeline firms also have embraced acquisitions over new

construction.

Enterprise Products Partners ( EPD ) co-CEO Jim Teague said

at a Houston energy conference his firm is not considering a new

oil pipeline out of West Texas. The CEO of rival operator Plains

All American Pipeline ( PAA ) said at the same event companies

are more likely to optimize existing rather than build new

lines.

Enbridge ( ENB ) will add up to 120,000 barrels per day

(bpd) to its Gray Oak oil pipeline by 2026, an example of

expanding capacity on an existing pipeline.

PRICE NO LONGER INCENTIVIZES DRILLERS

Both Chiang and Teague said Permian shale producers are not

likely to return to their era of fast-growth that prompted the

construction of new oil lines last decade.

Drillers remain disciplined in their spending for new

volumes and do not look to drill and grow production even if

prices jump from current levels, Chiang added.

"A range of roughly of $60 to $90 (per barrel) doesn't

change their plans too much," he said.

Output from the Permian basin in the next few years could

rise about 300,000 bpd, he said, largely in line with the latest

government estimate.

DEEPWATER EXPORT PROJECTS LAG

Enterprise' Teague also said that his company continues to

advance its proposed deepwater oil export project, Sea Port Oil

Terminal (SPOT), but "nobody wants to be (the) first" customer

to sign up.

Multi-year regulatory delays, a loss of commercial backers

and slowing U.S. shale oil production growth has SPOT and three

rival offshore oil-export projects struggling.

A change in crude flows as many Western nations banned

imports of Russian crude after the country's invasion of

Ukraine, pushing Russian oil to flow to Asia, also has undercut

the outlook for U.S. deepwater export projects that can load

supertanker directly.

"Things have changed, but my gut feeling is that we'll be

able to get SPOT across the finish line," Teague said while

speaking at an RBN Energy conference in Houston.

However, Plain's Chiang said "the jury is out on SPOT,"

saying it while it makes a lot of sense on paper, existing

export contracts and systems could limit availability of

customers.