Enterprise, Oxy to build Delaware basin gas plant

Enterprise Products Partners LP (EPP) and an affiliate of Occidental Petroleum Corp., both of Houston, will develop a 150-MMcfd cryogenic natural gas processing plant to handle growing rich-gas production in the Delaware basin, EEP reported.

The plant will be owned by Delaware Basin Gas Processing LLC, a joint venture equally owned by EPP and Oxy. The plant is supported by long-term, firm delivery contracts, the company said, and will begin operations in mid-2016. EPP will manage construction and operate the plant.

In addition, EPP will build, own, and operate a 12-in. OD pipeline that will move NGLs from the new plant to one of EPP’s NGL pipelines with access to its NGL fractionation and storage in Mont Belvieu, Tex. The company’s Texas intrastate pipeline system will deliver gas to the tailgate of the plant.

The new plant, combined with EPP’s recently announced 200-MMcfd cryogenic plant being built in Eddy County, NM, will increase EPP’s net gas processing capacity in the Permian basin to more than 600 MMcfd (OGJ Online, Sept. 30, 2014), the company said.

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