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Enterprise starts natural gas processing plant

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World Pipelines,

Enterprise Products Partners L.P. has announced the start of commercial operations at the company’s new cryogenic natural gas processing facility in Eddy County, New Mexico. The South Eddy plant, which is supported by long term, fee-based agreements, has a nameplate capacity of 200 million ft3/d of natural gas processing and is capable of extracting up to 25 000 bpd of natural gas liquids (NGL). The startup of the South Eddy plant provides Enterprise’s customers with immediate incremental value. Prior to startup, much of the natural gas being processed at the plant was flared, shut in, or blended into a residue pipeline with no NGL upgrade.

“The South Eddy Plant is a key component of our overall strategy to double Enterprise’s natural gas processing capacity in the Delaware Basin during 2016,” said A.J. ‘Jim’ Teague, Chief Executive Officer of Enterprise’s general partner. “A second cryogenic processing facility we are developing as part of our joint venture at Waha is scheduled to begin service in the 3Q16 and will add another 150 million ft3/d of incremental capacity.”

In association with the plant’s construction, Enterprise constructed approximately 90 miles of high pressure gathering lines to supply the South Eddy plant. Additionally, the partnership completed a 71 mile extension of its Mid-America pipeline system that provides Delaware Basin producers with NGL takeaway capacity and direct access to Enterprise’s integrated network of NGL assets.

Teague added, “Despite the decrease in rig count nationwide, the Delaware Basin remains very active. With production expected to continue to grow, we are committed to capitalising on the increased opportunities for midstream services. The additional processing capacity, combined with the connectivity of our integrated midstream network, will provide Delaware Basin producers with unmatched access to the NGL fractionation and storage hub at Mont Belvieu, Texas, as well as attractive domestic and international markets.”

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. Their services include: natural gas, crude oil and petrochemical gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage and import and export terminals; and a marine transportation business that operates primarily on the US inland and Intracoastal Waterway systems. The partnership’s assets include approximately 49 000 miles of pipelines; 250 million bbls of storage capacity for NGLs, crude oil, refined products and petrochemicals; and 14 billion ft3 of natural gas storage capacity.

Adapted from press release by Francesca Brindle

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