The company will also develop associated natural gas and natural gas liquid (NGL) pipeline infrastructure to meet growing production of NGL-rich natural gas in the Delaware Basin.
The assets are scheduled to commence operations in the first quarter of 2016.
With potential for future expansions, the South Eddy natural gas processing plant is expected to have an initial capacity of 200 million cubic feet per day (MMcf/d) of natural gas and will bring the company’s total natural gas processing plant capacity in the Delaware Basin to 400 MMcf/d.
Enterprise is also planning to construct approximately 80 miles of natural gas gathering pipelines to supply to the new plant and to complement its existing 1,500 miles of natural gas pipelines located in the Delaware Basin.
A 75-mile, 12-inch diameter NGL pipeline will also be developed by Enterprise to transport NGLs from the South Eddy plant to the company’s Hobbs NGL fractionation and storage facility in Gaines County, Texas.
Additionally, the compnay will build pipelines to deliver residue gas from the South Eddy plant to multiple third party pipelines.
Enterprise general partner chief operating officer Jim Teague said: "The addition of this new cryogenic natural gas processing facility to our integrated midstream network provides producers in this prolific region improved flow assurance and additional market choices, including access to expanding petrochemical facilities and export opportunities along the Gulf Coast."
