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Enterprise building NGL pipeline from Permian Basin to Mont Belvieu

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Enterprise building NGL pipeline from Permian Basin to Mont Belvieu

Enterprise Products Partners LP is building a 571-mile natural gas liquids pipeline from the Permian Basin to its Mont Belvieu, Texas, fractionation and storage complex in anticipation of continued growth in the oil and gas play.

The Shin Oak NGL pipeline is designed to have an initial capacity of 250,000 barrels per day, expandable to 600,000 bbl/d, and would carry NGLs from Enterprise's Hobbs fractionation and storage facility in Gaines County, Texas, to the Mont Belvieu complex, according to an April 10 news release.

The Shin Oak pipeline would increase capacity to transport purity NGL products from Hobbs to Mont Belvieu and provide takeaway capacity for the Hobbs facility, as well as for other processing plants in the Permian region, including two new Enterprise facilities that started up in 2016 and the Orla I plant, expected to begin service in the second quarter of 2018. The pipeline is scheduled to begin service in the second quarter of 2019.

Enterprise also plans to add a ninth fractionator at the Mont Belvieu complex to boost fractionation capacity by 85,000 bbl/d, which is expected to be complete in the second quarter of 2018. The complex has 130 MMbbl of underground storage capacity and 670,000 bbl/d of fractionation capacity, as well as pipeline connectivity to Gulf Coast markets and Enterprise's liquefied petroleum gas and ethane deepwater marine export terminals on the Houston Ship Channel.

"The Permian Basin is currently the hottest play in North America and is expected to continue its strong growth for years to come," said A. James Teague, CEO of Enterprise's general partner. "The Shin Oak pipeline project is part of Enterprise's larger plans in the Permian to leverage our integrated midstream assets to link supplies of cost-advantaged U.S. hydrocarbons to the largest domestic and global NGL markets."