Enterprise Products announces four new production projects in Permian Basin

Enterprise Products announced four new capital projects to support continuing production growth in the Permian Basin. The partnership has also begun initial steps to return the Seminole Pipeline, which has a capacity of 210,000 barrels per day of crude oil, to natural gas liquid transportation service in December. The four projects include two natural gas processing plants, the Bahia NGL pipeline, NGL fractionator 14 and an associated deisobutanizer at Enterprise’s Chambers County, Texas complex. Each of these projects is expected to begin service during 2025. Enterprise’s fundamentals group forecasts crude oil production in the Permian Basin is on track to increase by over 700,000 BPD in 2023 and to grow by approximately 1.5 million BPD for the three-year period ending 2025. Post 2025, the company expects crude oil production from the basin to reach in excess of 7.5 million BPD by the end of 2030. The partnership believes NGL production from the basin is on track to increase by over 200,000 BPD in 2023, and grow by 700,000 BPD for the three-year period ending 2025. From 2025 to 2030, Enterprise believes NGL production from the Permian could grow by over 500,000 BPD to nearly 4.0 million BPD by the end of 2030. Enterprise has started construction on the Mentone 4 natural gas plant serving the Delaware Basin. Mentone 4 will have the capacity to process over 300 MMcf/d of natural gas to extract more than 40,000 BPD of NGLs. This plant is expected to begin service in the second half of 2025. Upon the completion of Mentone 3 and Mentone 4, Enterprise will have approximately 2.5 Bcf/d of natural gas processing capacity in the Delaware Basin capable of extracting more than 330,000 BPD of NGLs. Enterprise has also commenced construction on the Orion natural gas processing plant. Orion will have the capacity to process over 300 MMcf/d of natural gas to extract more than 40,000 BPD of NGLs. This plant is expected to be in service in the second half of 2025. Construction of the previously announced Leonidas natural gas processing plant, which also has the capacity to process in excess of 300 MMcf/d of natural gas, is proceeding on schedule and is expected to begin service in 1Q24. Enterprise will build the Bahia NGL pipeline, a 550-mile pipeline with the capacity to transport up to 600,000 BPD of NGLs originating from the Delaware and Midland basins to Enterprise’s fractionation complex in Chambers County. This pipeline, which is currently expected to be wholly owned by Enterprise, is projected to begin service in the first half of 2025. Enterprise has begun preparations to convert the Seminole Red Pipeline from crude oil service back to NGL service in December 2023. This pipeline has been in crude oil transportation service since 2Q19 and was known as Enterprise’s Midland-to-ECHO 2 crude oil pipeline. Prior to 2019, the Seminole Red Pipeline was in NGL service. The final Permian growth project is Enterprise’s NGL fractionator 14 in Chambers County. This plant will have the capacity to fractionate up to 195,000 BPD of NGLs and the new associated DIB unit will have the capability to separate up to 100,000 BPD of butanes. Construction is scheduled to be completed during the second half of 2025.