Enterprise expanding Permian gas processing, pipeline capacities

Enterprise Products Partners LP (EPP) is adding fresh capacity to its existing natural gas processing and gathering systems in the Delaware and Midland subbasins of the Permian basin. 

The three organic growth projects—which will include the addition of two new cryogenic natural gas processing plants, as well as the expansion of the operator’s existing Shin Oak NGL pipeline system—comes as part of EPP’s plan to support ongoing production growth of crude oil, natural gas, and NGLs in the region, EPP told investors upon release of its second-quarter 2022 earnings report.

In Delaware basin, EPP will add a third 300-MMcfd gas processing plant at its existing 300-MMcfd Mentone complex in Loving County, Tex. Supported by long-term capacity agreements and scheduled for startup by the end of first-quarter 2024, the new plant—which also will enable 40,000 b/d of incremental NGL extraction—will increase EPP’s overall Delaware basin gas processing and NGL extraction capacities to 2.2 bcfd and 300,000 b/d, respectively, the operator said.

In an effort to expand its network of Midland basin assets acquired under its purchase of Navitas Midstream Partners LLC earlier this year, EPP said it also will add a seventh gas processing plant in Midland County, Tex., (OGJ Online, Jan. 10, 2022). Backed by long-term acreage dedication agreements and to be equipped with 40,000 b/d of NGL extraction capability, the 300-MMcfd Plant 7—also scheduled for completion by the end of first-quarter 2024—will boost the operator’s overall respective gas processing and NGL extraction capacities in Midland basin to 1.6 bcfd and 220,000 b/d.

To accommodate rising Permian NGL production, EPP also will add up to 275,000 b/d of NGL transportation capacity to the 669-mile Shin Oak pipeline, which delivers NGL from Orla, Tex., to EPP’s NGL fractionation and storage complex in Mont Belvieu, Tex., along the US Gulf Coast (OGJ Online, Feb. 28, 2019). The pipeline expansion—which will be executed via looping and modifications to existing pump stations—is targeted for completion during first-half 2024, the operator said.

During the Aug. 3 quarterly earnings call, EPP said it plans to commission its 300-MMcfd Plant 6 in Midland basin during second-quarter 2023 and its second 300-MMcfd Mentone plant in Delaware basin during fourth-quarter 2023.