West Texas LPG system to expand into Delaware Basin

The West Texas LPG Pipeline Limited Partnership joint venture plans to invest about $200 million to expand its natural gas liquids (NGL) system into the prolific Delaware Basin, part of the larger Permian Basin, in service by the third quarter of 2018. Martin Midstream Partners and Oneok Inc. comprise the joint venture.

According to Martin Midstream Partners, the extension will include: The construction of an approximately 120-mile, 16-inch pipeline lateral that will have an initial capacity of 110,000 barrels per day and the construction of two new pump stations and pipeline looping along the existing West Texas LPG system that will increase its capacity to handle the dedicated volume.

“When entering into the joint venture with Oneok in 2014, significant NGL volume growth was at the forefront of our investment thesis,” Ruben S. Martin III, Martin Midstream Partners president and CEO, says. “The extension of the West Texas LPG Pipeline into the core of the Delaware Basin ideally positions us for this growth.”

West Texas LPG Pipeline is an interstate NGL pipeline system that consists of about 2,600 miles of NGL pipeline in Texas and New Mexico. The system provides transportation services to the Mont Belvieu market center from nearly 40 third-party natural gas processing plants located in the Permian Basin. The Permian Basin in southeastern New Mexico and western Texas is the largest crude oil and natural gas producing basin in the United States.