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A Houston-based midstream natural gas and crude oil pipeline company will undertake three organic growth projects in an effort to expand its presence in the Permian Basin, per a press release.
Enterprise Products Partners, L.P., said in the release that the projects are the addition of two natural gas processing plants and the expansion of its natural gas liquid pipeline system.
“The Permian Basin continues to be the driver for U.S. production growth of crude oil, natural gas and NGLs that supports increasing energy demand both domestically and abroad,” A.J. “Jim” Teague, the company’s co-CEO said in the release.
According to Enterprise, it’ll add one plant in Loving County and another in Midland County.
The Loving County facility is the third at the company’s Mentone cryogenic natural gas processing plant and is expected to boost nameplate capacity at Mentone by 300 million cubic feet daily, as well as enable the extraction of an incremental 40,000 barrels per day of natural gas liquid, according to the release.
Enterprise anticipates the plant to commence operations in mid-2024.
The Midland County plant, the release said, is designated by Enterprise as “Plant 7,” and is part of the company’s expansion of assets acquired in the purchase of Navitas Midstream earlier this year.
Like the plant in Loving County, the facility will have a nameplate natural gas processing capacity of 300 MMcf/d and an extraction of an incremental 40,000 BPD.
It’ll also began service at the end of the first quarter of 2024, the release said.
Enterprise additionally seeks to expand its Shin Oak NGL pipeline system by way of looping and modification of existing pump stations.
“These projects provide Enterprise with a capital-efficient way of meeting the needs of our producing customers while generating an attractive return on capital for the partnership,” Teague said in the release.