EnLink Midstream adding gas plant in Delaware basin
EnLink Midstream LLC is proceeding with relocation of an underutilized natural gas processing plant from the Barnett shale of North Texas to the company’s operations in the Permian’s Delaware basin.
Known as Project Tiger II, the 150-MMcfd plant’s relocation is scheduled to be completed during second-quarter 2024 at a total net cost of $30 million, of which $15 million would qualify as an operating expense, EnLink told investors in its fourth-quarter 2022 earnings report.
While the operator did not reveal further details about the relocation project, the company did confirm the newly named Tiger II plant was one of three processing assets EnLink gained via its third-quarter 2022 acquisition of Crestwood Equity Partners LP Barnett shale assets (OGJ Online, May 25, 2022).
EnLink previously completed the 240-MMcfd Tiger I gas processing plant in Culberson County, Tex., in August 2020.
Mont Belvieu fractionator
In addition to the Tiger II relocation, EnLink said it completed construction of its 235-MMcfd Phantom processing plant in the Texas Midland basin, as well as agreed with partner Gulf Coast Fractionators (GFC) to the restart of their co-owned 145,000-b/d NGL fractionator in Mont Belvieu, Tex.
EnLink holds a 38.75% interest in the fractionator, with operator GCF holding the remaining 61.25% interest.
Idled to lower the partners’ operating expenses beginning in January 2021 amid reduced demand for fractionation capacity in the region, the Mont Belvieu fractionator is slated for restart during first-half 2024, EnLink said.
Robert Brelsford | Downstream Editor
Robert Brelsford joined Oil & Gas Journal in October 2013 as downstream technology editor after 8 years as a crude oil price and news reporter on spot crude transactions at the US Gulf Coast, West Coast, Canadian, and Latin American markets. He holds a BA (2000) in English from Rice University and an MS (2003) in education and social policy from Northwestern University.