Enterprise to Build Two Natural Gas Plants, Expand Shin Oak Pipeline System in Permian
Enterprise Products Partners LP has unveiled plans to build two natural gas processing plants and expand its natural gas liquid (NGL) pipeline system in the Permian Basin to further support ongoing production growth in the basin.
“The Permian Basin continues to be the driver for U.S. production growth of crude oil, natural gas and NGLs that supports increasing energy demand both domestically and abroad,” A.J. “Jim” Teague, co-CEO of Enterprise, said. “The reliable supplies are a vital necessity for world markets, given the disruptions caused by the Russian invasion of Ukraine.”
In the Delaware Basin, Enterprise will add a third plant at its Mentone cryogenic natural gas processing plant in Loving County, Texas. The project will increase nameplate capacity at Mentone by 300 million cubic feet per day (MMcf/d) and allow Enterprise to extract an incremental 40,000 barrels per day (bbl/d) of NGL. The expansion is supported by long-term capacity agreements and is expected to begin service at the end of the first quarter of 2024.
Upon completion, Enterprise will have a total nameplate natural gas processing capacity in the Delaware Basin of 2.2 billion cubic feet per day (Bcf/d) and more than 300,000 bbl/d of NGL extraction capabilities.
In the Midland Basin, Enterprise is expanding its network of natural gas processing assets acquired in the purchase of Navitas Midstream in February of 2022. Enterprise will add its seventh natural gas processing plant in Midland County, Texas. Plant 7, which is supported by long-term acreage dedication agreements, will have a nameplate natural gas processing capacity of 300 MMcf/d and will be able to extract over 40,000 bbl/d of NGLs. Following its completion at the end of the first quarter of 2024, Enterprise will have a total of 1.6 Bcf/d of processing capacity and more than 220,000 bbl/d of NGL extraction capabilities in the Midland Basin.
Increasing NGL production in the Permian Basin creates the need for additional NGL transportation capacity. Enterprise plans to expand its Shin Oak NGL pipeline system via looping and modification of existing pump stations. This initial expansion would add up to 275,000 bbl/d of capacity, with completion expected in the first half of 2024.
Enterprise Products Partners L.P. is one of the largest publicly traded partnerships with more than 50,000 miles of pipelines; over 260 million barrels of storage capacity for NGLs, crude oil, refined products and petrochemicals; and 14 billion cubic feet of natural gas storage capacity.
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