Enterprise and Occidental Petroleum Form Company to Build Natural Gas Processing Facility in Delaware Basin
April 30 2015 - 6:00AM
Business Wire
Enterprise Products Partners L.P. (NYSE:EPD) today announced it
has entered into an agreement with an affiliate of Occidental
Petroleum Corporation (NYSE:OXY) 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 will be owned by
Delaware Basin Gas Processing LLC (“Delaware Processing”), a
company owned 50/50 by Enterprise and Occidental. The plant, which
is supported by long-term, firm contracts, is expected to begin
operations in mid-2016. Enterprise will serve as the construction
manager and operator of the Delaware Basin Processing plant.
In addition to the processing plant, 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 very pleased to partner with Occidental, one of the
premier producers in the Permian Basin,” said A.J. “Jim” Teague,
chief operating officer of Enterprise’s general partner. “This new
facility, combined with Enterprise’s recently announced 200 MMcf/d
cryogenic processing plant being built in Eddy County, New Mexico,
reflects the company’s commitment to providing producers in the
Permian Basin with flow assurance and market choices. When
completed, the two plants will increase Enterprise’s net natural
gas processing capacity in the Permian Basin to more than 600
MMcf/d.”
Enterprise Products Partners L.P. is one of the largest publicly
traded partnerships and a leading North American provider of
midstream energy services to producers and consumers of natural
gas, NGLs, crude oil, refined products and petrochemicals. Our
services include: natural gas gathering, treating, processing,
transportation and storage; NGL transportation, fractionation,
storage and import and export terminals; crude oil and refined
products transportation, storage and terminals; offshore production
platforms; petrochemical transportation and services; and a marine
transportation business that operates primarily on the United
States inland and Intracoastal Waterway systems and in the Gulf of
Mexico. The partnership’s assets include approximately 51,000 miles
of onshore and offshore pipelines; 225 million barrels of storage
capacity for NGLs, crude oil, refined products and petrochemicals;
and 14 billion cubic feet of natural gas storage capacity.
This press release includes “forward-looking statements” as
defined by the Securities and Exchange Commission. All statements,
other than statements of historical fact, included herein that
address activities, events, developments or transactions that
Enterprise and its general partner expect, believe or anticipate
will or may occur in the future are forward-looking statements.
These forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially
from expectations, including required approvals by regulatory
agencies, the possibility that the anticipated benefits from such
activities, events, developments or transactions cannot be fully
realized, the possibility that costs or difficulties related
thereto will be greater than expected, the impact of competition,
and other risk factors included in Enterprise’s reports filed with
the Securities and Exchange Commission. Readers are cautioned not
to place undue reliance on these forward-looking statements, which
speak only as of their dates. Except as required by law, Enterprise
does not intend to update or revise its forward-looking statements,
whether as a result of new information, future events or
otherwise.
Enterprise Products Partners L.P.Investor RelationsRandy
Burkhalter, 713-381-6812orMedia RelationsRick Rainey,
713-381-3635
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