Enterprise Products Partners L.P. announced plans to build a new cryogenic natural gas processing facility and associated natural gas and natural gas liquids (NGL) pipeline infrastructure to facilitate continued growth of NGL-rich natural gas production in the Delaware Basin of West Texas and southeastern New Mexico.
The site for the new processing plant, which will have a nameplate capacity of 300 million cubic feet per day ("MMcf/d") and the capability to extract more than 40,000 barrels per day of NGL, has yet to be determined. The project is anchored by long-term commitments from a major producer. The facility is expected to begin service in the second quarter of 2018.
"This project, which complements our ongoing growth in the region, is the third cryogenic natural gas processing plant Enterprise has announced in less than 24 months," said A.J. "Jim" Teague, chief executive officer of Enterprise’s general partner. "The South Eddy facility began operations earlier this year, while our joint venture processing plant at Waha is expected to begin service in the third quarter of 2016. Altogether, these initiatives are expected to increase our processing capacity in the Delaware Basin to 800 MMcf/d, compared to 40 MMcf/d in 2012."
In addition to providing new gas processing capabilities, the scope of the project will include construction of rich natural gas gathering lines, a residue pipeline to Waha and an NGL pipeline to Enterprise’s Mid-America Pipeline system. These assets will be designed to integrate with the rest of the company’s Delaware Basin infrastructure.
Teague added, "The continued growth of Enterprise’s Delaware Basin network, and its integration with the rest of our systems, offers additional value-added options, as well as access to the most attractive domestic and international markets. For Enterprise, the expanded Delaware Basin facilities create efficient bolt-on opportunities."