Enlink Midstream announces new projects
The EnLink Midstream companies, EnLink Midstream Partners, LP and EnLink Midstream, LLC, have announced two new growth projects that will expand EnLink Midstream’s footprint in the Permian Basin and south Louisiana. These investments will complement EnLink Midstream’s existing asset footprint and offer enhanced midstream services to producer customers in these regions.
"Earlier this year we outlined our growth strategy to reach our goal of doubling the company’s size by the end of 2017,” said Barry E. Davis, EnLink Midstream’s President and Chief Executive Officer. “These are exactly the types of projects we identified that will help us reach our objectives. Our strong asset base in premier oil and gas plays along with our focus on establishing long-term, fee-based contracts creates an extensive pipeline of opportunities. We look forward to continuing to execute our growth strategy to create value for our unitholders, customers and employees.”
Expansion in West Texas
The Partnership announced that it will expand its natural gas gathering and processing system in the Permian Basin by constructing a new natural gas processing plant and expanding its rich gas gathering system. The entire expansion project is expected to cost over US$ 200 million, increasing the Partnership’s total invested capital in the Permian to over US$ 400 million.
The new 120 million ft3/d gas processing plant will be strategically located near the Partnership’s existing midstream assets and will offer additional gas processing capabilities to producer customers in the region, including Devon Energy. The processing plant is expected to be operational in the second half of 2015. Upon completion, the Partnership’s total operated processing capacity in the region will be approximately 240 million ft3/d.
The new 120 million ft3/d gas processing plant will be strategically located near the Partnership’s existing midstream assets and will offer additional gas processing capabilities to producer customers in the region, including Devon Energy. The processing plant is expected to be operational in the second half of 2015. Upon completion, the Partnership’s total operated processing capacity in the region will be approximately 240 million ft3/d.
Joint venture to construct NGL pipeline
The Partnership also announced that it has entered into a series of agreements with MPL Investment LLC, a subsidiary of Marathon Petroleum Corporation, to create a 50/50 joint venture named Ascension Pipeline Company, LLC. This joint venture will build a new 30 mile natural gas liquids (NGL) pipeline connecting the Partnership’s existing Riverside fractionation and terminal complex to Marathon Petroleum’s Garyville refinery located on the Mississippi River. The bolt-on project to the Partnership’s Cajun-Sibon NGL system is supported by long-term, fee-based contracts with Marathon Petroleum. Under the arrangement, the Partnership will serve as the construction manager and operator of the pipeline project, which is expected to be operational in the first half of 2017.
Adapted from press release by Hannah Priestley-Eaton
Read the article online at: https://www.worldpipelines.com/business-news/06082014/enlink-midstream-announces-new-projects/
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