Natural Gas Gas Processing Plant in Delaware
New plant project in the wake of shale gas: enterprise and Occidental Petroleum plan a joint 150 million cubic feet per day cryogenic natural gas processing plant in the Delaware Basin.
Houston, Texas/USA – The plant shall be operated by a 50750 joint venture company and enter production in mid-2016, the partners explained. Enterprise will serve as the construction manager and operator of the Delaware Basin Processing plant.
In addition to the processing plant, Enterprise will construct, own and operate a new 12-inch diameter pipeline that will transport natural gas liquids (“NGL”) from the new facility to one of Enterprise’s NGL pipelines. The gas liquids will then be further distributed from Enterprise’s NGL fractionation and storage complex in Mont Belvieu, Texas. The partnership’s Texas Intrastate pipeline system will provide natural gas at the tailgate of the plant with access to multiple markets.
“We are very pleased to partner with Occidental, one of the premier producers in the Permian Basin,” said A.J. Teague, chief operating officer of Enterprise’s general partner. “This new facility, combined with Enterprise’s recently announced 200 MMcf/d cryogenic processing plant being built in Eddy County, New Mexico, reflects the company’s commitment to providing producers in the Permian Basin with flow assurance and market choices. When completed, the two plants will increase Enterprise’s net natural gas processing capacity in the Permian Basin to more than 600 MMcf/d.” Only recently, the company announced plans to build a new crude oil and condensate pipeline in the US south.