EPP plans third gas plant for Delaware basin

Enterprise Products Partners LP (EPP), Houston, plans to further expand its gas processing capacity and associated systems in the Delaware basin of West Texas and southeastern New Mexico to take advantage of growing production of NGL-rich natural gas in the region (OGJ Online, Sept. 30, 2014).

EPP will build a 300-MMcfd cryogenic gas processing plant and add more than 40,000 b/d of NGL extraction capability to complement the company’s ongoing growth in the region, EPP said.

While EPP has yet to determine a precise location to site the proposed plant, the company confirmed the proposed project already is anchored by long-term commitments from an unidentified major producer.

In addition to providing gas processing capabilities, the scope of the project will include construction of rich gas gathering lines, a residue pipeline to the Waha hub in West Texas, and an NGL pipeline to EPP’s Mid-America Pipeline system in order to integrate operations with the rest of the company’s Delaware basin systems, EPP said.

The proposed project, which will include the third cryogenic gas processing plant EPP has announced in less than 24 months, is scheduled for startup during second-quarter 2018.

In May, EPP commissioned a 200-MMcfd cryogenic gas processing plant as well as 25,000 b/d of NGL-extraction capability and associated systems in Eddy County, NM, as part of the company’s overall strategy to double EPP’s gas processing capacity in the Delaware basin during 2016 (OGJ Online, May 20, 2016).

EPP also remains on track with the previously announced startup during this year’s third quarter of a 150-MMcfd cryogenic gas processing plant and 20,000-b/d of NGL extraction capability project under development with an affiliate of Occidental Petroleum Corp. (OGJ Online, Apr. 30, 2015).

EPP, which will operate the Waha plant on behalf of the EPP-Oxy joint venture, Delaware Basin Gas Processing LLC, also will build, own, and operate a 12-in. OD pipeline that will move NGLs from the plant to one of EPP’s NGL pipelines offering access to its NGL fractionation and storage in Mont Belvieu, Tex.

Once all in service by mid-2018, the three projects together will increase EPP’s processing capacity in Delaware basin to 800 MMcfd from 40 MMcfd in 2012, said A.J. Teague, chief executive officer of EPP’s general partner.

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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