Enterprise Products Partners L.P. has recently announced four new capital projects to support the increasing production growth in the Permian Basin. These projects aim to enhance the transportation and processing capabilities of crude oil and natural gas liquids in the region.
One of the significant projects is the return of the Seminole Pipeline to NGL transportation service. With a capacity of 210,000 barrels per day of crude oil, the pipeline will be converted to transport NGLs starting from December 2023. This move aligns with Enterprise’s forecast of significant growth in crude oil, natural gas, and NGL production in the Permian Basin.
The partnership expects crude oil production to increase by over 700,000 BPD in 2023 and reach a growth of approximately 1.5 million BPD by 2025. Looking ahead, Enterprise predicts an additional increase of 15 percent post-2025, surpassing 7.5 million BPD by 2030. Similarly, NGL production in the Permian Basin is projected to grow by more than 200,000 BPD in 2023 and by 700,000 BPD by 2025. By 2030, NGL production could reach nearly 4.0 million BPD.
To support these projections, Enterprise is constructing two natural gas processing plants: Mentone 4 in the Delaware Basin and Orion in the Midland Basin. Each plant will have the capacity to process over 300 million cubic feet per day (MMcf/d) of natural gas and extract more than 40,000 BPD of NGLs. Mentone 4 is expected to begin service in the second half of 2025, while Orion is projected to be in service in the same period.
Additionally, the partnership is building the Bahia NGL pipeline, a 550-mile pipeline that will transport up to 600,000 BPD of NGLs from the Delaware and Midland basins to Enterprise’s fractionation complex in Chambers County. The pipeline is planned to be in service in the first half of 2025.
Enterprise is also constructing the NGL fractionator 14 in Chambers County, with a capacity to fractionate up to 195,000 BPD of NGLs. The associated deisobutanizer (DIB) unit will have the capability to separate up to 100,000 BPD of butanes. The completion of this project is scheduled for the second half of 2025.
The investments made by Enterprise in these projects, totaling $6.8 billion, demonstrate the company’s commitment to supporting the growing energy production in the Permian Basin. These expansions will not only facilitate increased production but also strengthen the company’s downstream pipelines and marine terminals, enabling the delivery of energy products to domestic and international markets.
As a leading provider of midstream energy services, Enterprise Products Partners L.P. continues to contribute to US energy security and dominance. The company’s investments in the Permian Basin will generate increasing cash flow, support distribution growth, and provide attractive returns for investors. With their extensive pipeline network and storage capacity, Enterprise is well-positioned to meet the rising demand for natural gas, NGLs, crude oil, refined products, and petrochemicals.
For more information visit www.enterpriseproducts.com
