Enterprise, Oxy to build gas processing facility in Delaware basin
Enterprise Products Partners L.P. has entered into an agreement with an affiliate of Occidental Petroleum Corporation to jointly develop a new 150 MMcfd 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 LLC, 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-in. diameter pipeline that will transport NGLs 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, COO of Enterprise’s general partner. “This new facility, combined with Enterprise’s recently announced 200 MMcfd 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 MMcfd.”
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