Enterprise Products Partners announced the start of commercial operations at the company’s new cryogenic natural gas processing facility in Eddy County, New Mexico.
The South Eddy plant, which is supported by long-term, fee-based agreements, has a nameplate capacity of 200 million cubic feet per day ("MMcf/d") of natural gas processing and is capable of extracting up to 25,000 barrels per day of natural gas liquids ("NGL"). The start-up of the South Eddy plant provides Enterprise’s customers with immediate incremental value. Prior to start-up, much of the natural gas being processed at the plant was flared, shut-in, or blended into a residue pipeline with no NGL upgrade.
"The South Eddy Plant is a key component of our overall strategy to double Enterprise’s natural gas processing capacity in the Delaware Basin during 2016," said A.J. "Jim" Teague, chief executive officer of Enterprise’s general partner. "A second cryogenic processing facility we are developing as part of our joint venture at Waha is scheduled to begin service in the third quarter of 2016 and will add another 150 MMcf/d of incremental capacity."
In association with the plant’s construction, Enterprise constructed approximately 90 miles of high-pressure gathering lines to supply the South Eddy plant. Additionally, the partnership completed a 71-mile extension of its Mid-America Pipeline system that provides Delaware Basin producers with NGL takeaway capacity and direct access to Enterprise’s integrated network of NGL assets.
Teague added, "Despite the decrease in rig count nationwide, the Delaware Basin remains very active. With production expected to continue to grow, we are committed to capitalizing on the increased opportunities for midstream services. The additional processing capacity, combined with the connectivity of our integrated midstream network, will provide Delaware Basin producers with unmatched access to the NGL fractionation and storage hub at Mont Belvieu, Texas, as well as attractive domestic and international markets."