Enterprise begins natural gas processing plant service in Delaware Basin

Enterprise built approximately 90 miles of high-pressure gathering lines to supply South Eddy plant

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Enterprise EVP COO A J Teague

HOUSTON- Enterprise Products Partners L.P. today announced the start of commercial operations at the company’s new cryogenic natural gas processing facility in Eddy County, New Mexico.

The South Eddy plant, which is supported by long-term, fee-based agreements, has a nameplate capacity of 200 MMcf/d of natural gas processing and is capable of extracting up to 25,000 barrels per day of NGL.

“The South Eddy Plant is a key component of our overall strategy to double Enterprise’s natural gas processing capacity in the Delaware Basin during 2016,” said A.J. “Jim” Teague, chief executive officer of Enterprise’s general partner.

The start-up of the South Eddy plant provides Enterprise’s customers with immediate incremental value.

Prior to start-up, much of the natural gas being processed at the plant was flared, shut-in, or blended into a residue pipeline with no NGL upgrade.

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Well automation reduces costs, boosts production for Permian Basin operators. Systems start at $3,000 fully installed by Production Lift Technologies of Midland, Texas.

 

“A second cryogenic processing facility we are developing as part of our joint venture at Waha is scheduled to begin service in the third quarter of 2016 and will add another 150 MMcf/d of incremental capacity,” said Teague.

In association with the plant’s construction, Enterprise constructed approximately 90 miles of high-pressure gathering lines to supply the South Eddy plant.

gasAdditionally, the partnership completed a 71-mile extension of its Mid-America Pipeline system that provides Delaware Basin producers with NGL takeaway capacity and direct access to Enterprise’s integrated network of NGL assets.

“Despite the decrease in rig count nationwide, the Delaware Basin remains very active. With production expected to continue to grow, we are committed to capitalizing on the increased opportunities for midstream services,”  said Teague.

“The additional processing capacity, combined with the connectivity of our integrated midstream network, will provide Delaware Basin producers with unmatched access to the NGL fractionation and storage hub at Mont Belvieu, Texas, as well as attractive domestic and international markets.”

inside-enduralloy-pipeCrownquest Operating LLC production manager Dave Kuhnert explains (video) how EndurAlloy™ production tubing cuts Permian Basin well operating costs

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