Enterprise Products Partners LP said it will tap the Permian Basin with a new pipeline to carry natural gas liquids (NGL) to its fractionation and storage complex in Mont Belvieu, TX.
The the 571-mile Shin Oak NGL pipeline would originate at Enterprise’s Hobbs NGL fractionation and storage facility in Gaines County, TX. The 24-inch diameter pipeline would have an initial capacity of 250,000 b/d, expandable to 600,000 b/d.
“The Permian Basin is currently the hottest play in North America and is expected to continue its strong growth for years to come,” said Jim Teague, CEO of Enterprise’s general partner.
The project is supported by long-term customer commitments and is expected to be in service in the second quarter of 2019, the company said.
In addition to mixed NGL supplies aggregated at Hobbs, Shin Oak would provide takeaway capacity for mixed NGLs extracted at natural gas processing plants in the Permian region, including two Enterprise facilities that began service in 2016 and the Orla I plant, which is scheduled to begin operations in the second quarter of 2018. The new pipeline would also increase the company’s capacity to transport purity NGL products from Hobbs to Mont Belvieu.
Enterprise is building a ninth fractionator at Mont Belvieu that will increase NGL fractionation capacity by 85,000 b/d following its expected completion in the second quarter of 2018. Mont Belvieu is pipeline-connected to the expanding U.S. petrochemical industry on the Gulf Coast, as well as Enterprise’s liquefied petroleum gas and ethane deepwater marine export terminals on the Houston Ship Channel.
“The Shin Oak pipeline project is part of Enterprise’s larger plans in the Permian to leverage our integrated midstream assets to link supplies of cost-advantaged U.S. hydrocarbons to the largest domestic and global NGL markets,” Teague said. “This additional pipeline takeaway capacity to Mont Belvieu will provide Permian producers the flow assurance they need to continue the unfettered development of their reserves with confidence.”
Enterprise recently announced plans to add ethylene infrastructure on the Gulf Coast with the anticipation of exporting ethylene in the future.
© 2021 Natural Gas Intelligence. All rights reserved.
ISSN © 1532-1231 | ISSN © 2577-9877 | ISSN © 1532-1266 |