Enterprise to Build Natural Gas Processing Facility and Pipelines to Serve Delaware Basin
September 30 2014 - 9:00AM
Business Wire
Enterprise Products Partners L.P. (NYSE:EPD) today announced
plans to construct a new cryogenic natural gas processing plant in
Eddy County, New Mexico and associated natural gas and natural gas
liquid (“NGL”) pipeline infrastructure to facilitate growing
production of NGL-rich natural gas in the Delaware Basin. These
assets are expected to begin operations in the first quarter of
2016.
The South Eddy natural gas processing plant will have an initial
capacity of 200 million cubic feet per day (“MMcf/d”) of natural
gas, with the potential for future expansions. Upon completion,
this will bring Enterprise’s total natural gas processing plant
capacity in the Delaware Basin to 400 MMcf/d.
To supply the new plant, Enterprise plans to construct
approximately 80 miles of natural gas gathering pipelines to
complement its existing 1,500 miles of natural gas pipelines
located in the Delaware Basin. Enterprise will also build a
75-mile, 12-inch diameter NGL pipeline to transport NGLs from the
South Eddy plant to the company’s Hobbs NGL fractionation and
storage facility in Gaines County, Texas. Through the connection at
Hobbs, customers will have access to Enterprise’s integrated
network of pipelines linking them to the company’s NGL
fractionation and storage complex in Mont Belvieu, Texas.
Additionally, Enterprise plans to construct pipelines to deliver
residue gas from the South Eddy plant to multiple third party
pipelines.
“With multiple production zones providing years of drilling
opportunities and the rig count in the region rising, the Delaware
Basin is expecting to see NGL-rich natural gas production continue
to expand significantly,” said A.J. “Jim” Teague, chief operating
officer of Enterprise’s general partner. “Volumes into our existing
facilities in the region have doubled since 2012 and existing
infrastructure is operating at capacity. As a result, our customers
are looking for a solution that will allow them to increase and
fully maximize the value of their production. The addition of this
new cryogenic natural gas processing facility to our integrated
midstream network provides producers in this prolific region
improved flow assurance and additional market choices, including
access to expanding petrochemical facilities and export
opportunities along the Gulf Coast.”
Enterprise Products Partners L.P. is one of the largest publicly
traded partnerships and a leading North American provider of
midstream energy services to producers and consumers of natural
gas, NGLs, crude oil, refined products and petrochemicals. Our
services include: natural gas gathering, treating, processing,
transportation and storage; NGL transportation, fractionation,
storage and import and export terminals; crude oil and refined
products transportation, storage and terminals; offshore production
platforms; petrochemical transportation and services; and a marine
transportation business that operates primarily on the United
States inland and Intracoastal Waterway systems and in the Gulf of
Mexico. The partnership’s assets include approximately 52,000 miles
of onshore and offshore pipelines; 200 million barrels of storage
capacity for NGLs, crude oil, refined products and petrochemicals;
and 14 billion cubic feet of natural gas storage capacity.
Additional information regarding Enterprise can be found on its
website, www.enterpriseproducts.com.
This press release includes “forward-looking statements” as
defined by the Securities and Exchange Commission. All statements,
other than statements of historical fact, included herein that
address activities, events, developments or transactions that
Enterprise and its general partner expect, believe or anticipate
will or may occur in the future are forward-looking statements.
These forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially
from expectations, including required approvals by regulatory
agencies, the possibility that the anticipated benefits from such
activities, events, developments or transactions cannot be fully
realized, the possibility that costs or difficulties related
thereto will be greater than expected, the impact of competition,
and other risk factors included in Enterprise’s reports filed with
the Securities and Exchange Commission. Readers are cautioned not
to place undue reliance on these forward-looking statements, which
speak only as of their dates. Except as required by law, Enterprise
does not intend to update or revise its forward-looking statements,
whether as a result of new information, future events or
otherwise.
Enterprise Products Partners L.P.Randy Burkhalter,
713-381-6812Investor RelationsorRick Rainey, 713-381-3635Media
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