LP Gas

Enterprise to add natural gas processing plant in Delaware Basin

Enterprise Products Partners LP plans to build a cryogenic natural gas processing facility and associated natural gas and natural gas liquids (NGL) pipeline infrastructure to facilitate continued growth of natural gas production in the Delaware Basin of West Texas and southeastern New Mexico.

The site for the new processing plant will have a capacity of 300 million cu. ft. per day and the capability to extract more than 40,000 barrels per day (bpd) of NGL. The company says the exact location for the facility has not been determined. According to Enterprise, 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,” says A.J. “Jim” Teague, CEO of Enterprise’s general partner, in a company statement. “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.”

Teague says the company’s initiatives are expected to increase its processing capacity in the Delaware Basin to 800 million cu. ft. per day compared to 40 million cu. ft. per day in 2012.

In addition to providing new gas processing capabilities, 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. Enterprise says these assets will be designed to integrate with the rest of the company’s Delaware Basin infrastructure.

“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,” Teague says. “For Enterprise, the expanded Delaware Basin facilities create efficient bolt-on opportunities.”

Enterprise Products Partners LP is a publicly traded partnership and a North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals.