Enterprise Products Partners LP (NYSE:EPD) 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 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.