West Texas LPG Pipeline LP, a joint venture of operator Oneok Inc. and Martin Midstream Partners LP, plans to invest $200 million to expand its natural gas liquids system into the Delaware basin.
The extension includes the construction of a 120-mile, 16-in. pipeline lateral with an initial capacity of 110,000 b/d, as well as the construction of two pump stations and pipeline looping along the existing West Texas LPG system that will increase its capacity to handle the dedicated volume.
The project, which is expected to be completed in third-quarter 2018, is supported by long-term dedicated NGL production from two planned third-party natural gas processing plants in northern Reeves County, Tex., which the partnership estimates will produce up to 40,000 b/d.
West Texas LPG Pipeline consists of 2,600 miles of NGL pipeline in Texas and New Mexico and provides transportation to the Mont Belvieu market center from nearly 40 third-party gas processing plants in the Permian basin. West Texas LPG Pipeline is owned 80% by Oneok and 20% by Martin Midstream.
