Enterprise to Build Natural Gas Processing Facility and Pipelines to Serve Delaware Basin

abarrelfullabarrelfull wrote on 02 Oct 2014 12:23
Tags: enterprise n-america pipeline usa

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Enterprise Products Partners L.P. (NYSE:EPD) today announced plans to construct a new cryogenic natural gas processing plant in Eddy County, New Mexico and associated natural gas and natural gas liquid (“NGL”) pipeline infrastructure to facilitate growing production of NGL-rich natural gas in the Delaware Basin. These assets are expected to begin operations in the first quarter of 2016.

The South Eddy natural gas processing plant will have an initial capacity of 200 million cubic feet per day (“MMcf/d”) of natural gas, with the potential for future expansions. Upon completion, this will bring Enterprise’s total natural gas processing plant capacity in the Delaware Basin to 400 MMcf/d.

To supply the new plant, Enterprise plans to construct approximately 80 miles of natural gas gathering pipelines to complement its existing 1,500 miles of natural gas pipelines located in the Delaware Basin. Enterprise will also build a 75-mile, 12-inch diameter NGL pipeline to transport NGLs from the South Eddy plant to the company’s Hobbs NGL fractionation and storage facility in Gaines County, Texas. Through the connection at Hobbs, customers will have access to Enterprise’s integrated network of pipelines linking them to the company’s NGL fractionation and storage complex in Mont Belvieu, Texas. Additionally, Enterprise plans to construct pipelines to deliver residue gas from the South Eddy plant to multiple third party pipelines.

“With multiple production zones providing years of drilling opportunities and the rig count in the region rising, the Delaware Basin is expecting to see NGL-rich natural gas production continue to expand significantly,” said A.J. “Jim” Teague, chief operating officer of Enterprise’s general partner. “Volumes into our existing facilities in the region have doubled since 2012 and existing infrastructure is operating at capacity. As a result, our customers are looking for a solution that will allow them to increase and fully maximize the value of their production. 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.”

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