Houston-based midstream Enterprise Products Partner (EPP) announced Tuesday that it will construct a new cryogenic natural gas processing plant and pipeline infrastructure to facilitate growing production in the Delaware Basin.
The plant will be located in Eddy County, New Mexico.
The pipelines will transport both natural gas and natural gas liquids.
The plant and pipeline infrastructure are expected to begin operations in the first quarter of 2016.
The South Eddy natural gas processing plant will have an initial capacity of 200 million cubic feet per day of natural gas, with the potential for future expansions.
Upon completion, Enterprise’s total natural gas processing plant capacity in the Delaware Basin will be 400 million cubic feet per day.
To supply the new plant, Enterprise plans to construct approximately 80 miles of natural gas gathering pipelines to complement its existing 1,500 miles of natural gas pipelines in the Delaware Basin.
Enterprise will also build a 75 mile long, 12-inch diameter NGL pipeline to transport natural gas liquids from the South Eddy plant to the company’s Hobbs natural gas liquids fractionation and storage facility in Gaines County, Texas.
Additionally, Enterprise plans to construct pipelines to deliver residue gas from the South Eddy plant to multiple third party pipelines.
The Delaware Basin spans from west Texas to southern New Mexico.