Enterprise, Occidental unveil new Delaware Basin gas processing project

Enterprise Products has entered into an agreement with Occidental Petroleum to jointly develop a new 150 million cubic feet/day (MMcf/d) cryogenic natural gas processing plant to accommodate the growing production of NGL-rich natural gas in the Delaware Basin.

The plant will be owned by Delaware Basin Gas Processing, a company owned 50/50 by Enterprise and Occidental. The plant, which is supported by long-term, firm contracts, is expected to begin operations in mid-2016.

Enterprise will serve as the construction manager and operator of the Delaware Basin Processing plant.

In addition to the processing plant, Enterprise will construct, own and operate a 12-inch diameter pipeline that will transport natural gas liquids (NGL) from the new facility to one of Enterprise’s NGL pipelines, which will provide customers with access to Enterprise’s NGL fractionation and storage complex in Mont Belvieu, Texas.

The partnership’s Texas Intrastate pipeline system will provide natural gas at the tailgate of the plant with access to multiple markets.

“We are very pleased to partner with Occidental, one of the premier producers in the Permian Basin,” said A.J. “Jim” Teague, chief operating officer of Enterprise’s general partner. “This new facility, combined with Enterprise’s recently announced 200 MMcf/d cryogenic processing plant being built in Eddy County, New Mexico, reflects the company’s commitment to providing producers in the Permian Basin with flow assurance and market choices.

"When completed, the two plants will increase Enterprise’s net natural gas processing capacity in the Permian Basin to more than 600 MMcf/d," he added.

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