Delaware Basin Gas Processing, a company equally owned by Enterprise and Occidental, will own the plant, while Enterprise will construct and operate it.
Slated for commissioning in mid-2016, the facility is underpinned by long-term, firm contracts.
Enterprise will also build and operate a 12-inch diameter pipeline to transport natural gas liquids (NGL) from the new facility to one of its NGL pipelines.
The NGL pipelines will provide customers access to Enterprise’s NGL fractionation and storage complex in Mont Belvieu, Texas.
Enterprise general partner COO AJ Teague said: "This new facility, combined with Enterprise’s recently announced 200mmcf/d cryogenic processing plant being built in Eddy County, New Mexico, reflects the company’s commitment to providing producers in the Permian Basin with flow assurance and market choices.
"When completed, the two plants will increase Enterprise’s net natural gas processing capacity in the Permian Basin to more than 600mmcf/d."
