Exxon to acquire 40% stake in Enterprise Bahia NGL pipeline
Enterprise Products Partners said on Thursday that ExxonMobil will buy a 40% stake in its Bahia natural gas liquids pipeline and help expand the system to handle growing Permian Basin volumes.
Exxon will reimburse about $650 MM for its share of the project costs to date, according to a regulatory filing.
The companies plan to boost capacity to 1 MMbpd after the deal closes, expected by early 2026, by adding pumping stations and building a 92-mi extension to ExxonMobil's Cowboy gas processing plant in Eddy County, New Mexico.
The 550-mi Bahia line, now in commissioning, is set to start commercial service soon, moving 600,000 bpd of mixed natural gas liquids (NGLs) from the Midland and Delaware basins to Enterprise's Mont Belvieu fractionation hub in Texas.
With natural gas liquids output climbing in the Permian, the ExxonMobil tie-up and New Mexico extension put Bahia in a stronger position to move those fuels to market.
"As the ratio of natural gas and NGL production to crude continues to increase in the Permian, the Bahia pipeline will be an essential artery," Enterprise co-CEO Jim Teague said, adding that NGL output in the region is expected to grow more than 30% from 2024 to 2030.
The extension, which will also connect to several Enterprise-operated plants in the Delaware Basin, is expected to be completed in the fourth quarter of 2027.
ExxonMobil’s portion of the project will be called the Cowboy Connector, while Enterprise will operate the combined system.
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