Enterprise Products Partners LP is planning to construct a cryogenic natural gas processing plant and associated midstream infrastructure in Eddy County, NM to serve growing production in the Permian Basin's Delaware sub-basin.
The South Eddy natural gas liquids (NGL) processing plant would have an initial capacity of 200 MMcf/d with the potential for expansion. Once completed, Enterprise's total gas processing plant capacity in the Delaware would double to 400 MMcf/d. The facilities could begin operations in early 2016.
"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 Enterprise COO Jim Teague. "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."
To supply the new plant, Enterprise plans to build 80 miles of gas gathering pipelines to complement its existing 1,500 miles of pipelines in the sub-basin. Enterprise also plans to construct a 75-mile, 12-inch diameter NGL pipeline from the South Eddy plant to the company's Hobbs fractionation and storage facility in Gaines County, TX.
Through the connection at Hobbs, customers would have access to Enterprise's integrated network of pipelines linking them to the company’s fractionation and storage complex in Mont Belvieu, TX. Additionally, Enterprise plans to construct pipelines to deliver residue gas from the South Eddy plant to multiple third-party pipelines.