While Oklahoma-based natural gas liquids company Oneok is the operator of the West Texas LPG pipeline system with a stake of 80%, Texas-based Martin Midstream Partners holds the remaining 20%.
The expansion project of the interstate NGL pipeline system is anticipated to be completed in Q3 2018.
MMLP president and CEO Ruben S. Martin III said: “When entering into the joint venture with Oneok in 2014, significant NGL volume growth was at the forefront of our investment thesis.
“The extension of the West Texas LPG Pipeline into the core of the Delaware Basin ideally positions us for this growth.”
Two third-party natural gas processing plants that are planned to come up in northern Reeves County will provide long-term dedicated NGL production for the expanded portion of the pipeline system.
The two gas processing plants are estimated to have production of up to 40,000 barrels per day (bpd).
As part of the Delaware Basin expansion, Oneok and Martin will construct a 16inch lateral pipeline of around 120km length that will initially support a capacity of 110,000bpd.
Also, the expansion includes construction of two new pump stations and pipeline looping along the existing West Texas LPG system that will boost the pipeline system’s capacity to support the dedicated volume.
Oneok president and CEO Terry K. Spencer said: “Extending the West Texas LPG Pipeline into the core of the Delaware Basin, one of the fastest growing plays in the U.S., positions the West Texas LPG system for significant future NGL volume growth.”
The existing West Texas LPG Pipeline comprises nearly 4,184km of NGL gathering pipelines laid out from the Permian Basin in southeastern New Mexico to East Texas and Mont Belvieu, Texas.
According to Oneok, the pipeline network delivers natural gas liquids from about 40 natural gas processing plants in the Permian Basin to the Mont Belvieu market center.
