Two US energy firms to jointly develop new natural gas processing facility in Delaware Basin

Enterprise Products Partners and Occidental Petroleum have agreed to jointly build a new cryogenic natural gas processing plant in the Delaware Basin.

Both the firms have formed Delaware Basin Gas Processing, a new company in which Enterprise and Occidental Petroleum have equal stakes.

The new company will own the facility, which has the capacity to process 150 million cubic feet per day (MMcf/d) of cryogenic natural gas.

Enterprise will serve as the construction manager and operate the plant after its planned completion in mid-2016.

The company will build, own and operate a 12-inch diameter pipeline that will transport natural gas liquids (NGL) from the new facility to one of its NGL pipelines, which will provide

Customers will have access to Enterprise’s NGL fractionation and storage complex in Mont Belvieu, Texas.

The partnership’s Texas Intrastate pipeline system will deliver natural gas at the tailgate of the facility with access to various markets.

Enterprise general partner chief operating officer A.J. Jim Teague said: "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."