Enterprise and OXY to build NG processing facility in Delaware Basin

Enterprise Products Partners LP (NYSE: EPD) has entered into an agreement with an affiliate of Occidental Petroleum Corp. (NYSE: OXY) to jointly develop a new 150 million cubic feet per day (MMcf/d) cryogenic natural gas processing plant to accommodate the growing production of natural gas in the Delaware Basin.

The plant will be owned by Delaware Basin Gas Processing LLC, a company owned 50/50 by Enterprise and Occidental. The plant, which is supported by long-term, firm contracts, is expected to begin operations in mid-2016. Enterprise will serve as the construction manager and operator of the Delaware Basin processing plant.

In addition to the processing plant, Enterprise will construct, own, and operate a 12-inch-diameter pipeline that will transport natural gas liquids (NGL) from the new facility to one of Enterprise’s NGL pipelines, which will provide customers with access to Enterprise’s NGL fractionation and storage complex in Mont Belvieu, Texas. The partnership’s Texas Intrastate pipeline system will provide natural gas at the tailgate of the plant with access to multiple markets.


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