Enterprise to Further Expand Delaware Basin Network with New Natural Gas Processing Plant
Enterprise Products Partners L.P. (NYSE: EPD) today announced plans to
build a new cryogenic natural gas processing facility and associated
natural gas and natural gas liquids (“NGL”) pipeline infrastructure to
facilitate continued growth of NGL-rich natural gas production in the
Delaware Basin of West Texas and southeastern New Mexico. The site for
the new processing plant, which will have a nameplate capacity of 300
million cubic feet per day (“MMcf/d”) and the capability to extract more
than 40,000 barrels per day of NGL, has yet to be determined. The
project is anchored by long-term commitments from a major producer. The
facility is expected to begin service in the second quarter of 2018.
“This project, which complements our ongoing growth in the region, is
the third cryogenic natural gas processing plant Enterprise has
announced in less than 24 months,” said A.J. “Jim” Teague, chief
executive officer of Enterprise’s general partner. “The South Eddy
facility began operations earlier this year, while our joint venture
processing plant at Waha is expected to begin service in the third
quarter of 2016. Altogether, these initiatives are expected to increase
our processing capacity in the Delaware Basin to 800 MMcf/d, compared to
40 MMcf/d in 2012.”
In addition to providing new gas processing capabilities, the scope of
the project will include construction of rich natural gas gathering
lines, a residue pipeline to Waha and an NGL pipeline to Enterprise’s
Mid-America Pipeline system. These assets will be designed to integrate
with the rest of the company’s Delaware Basin infrastructure.
Teague added, “The continued growth of Enterprise’s Delaware Basin
network, and its integration with the rest of our systems, offers
additional value-added options, as well as access to the most attractive
domestic and international markets. For Enterprise, the expanded
Delaware Basin facilities create efficient bolt-on opportunities.”
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 gathering, transportation, storage and terminals;
petrochemical and refined products transportation, storage and
terminals; and a marine transportation business that operates primarily
on the United States inland and Intracoastal Waterway systems. The
partnership’s assets include approximately 49,000 miles of pipelines;
250 million barrels of storage capacity for NGLs, crude oil, refined
products and petrochemicals; and 14 billion cubic feet of natural gas
storage capacity.
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.
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