Enterprise, Occidental jointly build cryogenic gas unit in Delaware basin

Enterprise, Occidental to jointly build cryogenic gas unit in Delaware basin

11:00 AM, 30th April 2015
Enterprise, Occidental to jointly build cryogenic gas unit in Delaware basin

HOUSTON, US: Oil and gas pipeline company Enterprise Products Partners LP said it has agreed with Occidental Petroleum Corporation affiliate to jointly develop a new 150 million cubic feet per day (mmcf/d) cryogenic natural gas processing plant to accommodate the growing production of NGL-rich natural gas in the Delaware basin. The plant is expected to begin operations in mid-2016, it said.

Delaware Basin Gas Processing LLC, a company owned 50:50 by Enterprise and Occidental, will own the plant. Also the plant is supported by long-term, firm contracts, Enterprise said. Moreover, Enterprise will serve as the construction manager and operator of the Delaware basin processing plant.

Additionally, Enterprise will construct, own and operate a 12-inch diameter pipeline that will transport natural gas liquids (NGL) from the new facility to one of Enterprise’s NGL pipelines, which will provide customers with access to 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 pleased to partner with Occidental, one of the premier producers in the Permian Basin,” said A.J. “Jim” Teague, chief operating officer, Enterprise’s general partner.

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