Enterprise Products Partners LP (NYSE: ETP) will build a new 571-mile pipeline to transport growing volumes of NGL from the Permian Basin to an NGL fractionation and storage complex in Mont Belvieu, Texas, the company said April 10.
The Shin Oak NGL pipeline will originate at Enterprise’s Hobbs NGL fractionation and storage facility in Gaines County, Texas. The 24-in.diameter pipeline will have an initial design capacity of 250,000 barrels per day (bbl/d), expandable to 600,000 bbl/d. The project is supported by long-term customer commitments and is expected to be in service in the second quarter of 2019.
In addition to mixed NGL supplies aggregated at the Hobbs facility, the Shin Oak pipeline will provide takeaway capacity for mixed NGL extracted at natural gas processing plants in the Permian region, including two Enterprise facilities that began service in 2016 and the Orla I plant that is scheduled to begin operations in the second quarter of 2018. In tandem with Enterprise’s existing NGL pipelines, this new pipeline will also increase the company’s capacity to transport purity NGL products from Hobbs to Mont Belvieu.
“The Permian Basin is currently the hottest play in North America and is expected to continue its strong growth for years to come,” said A.J. “Jim” Teague, CEO of Enterprise’s general partner. “The Shin Oak pipeline project is part of Enterprise’s larger plans in the Permian to leverage our integrated midstream assets to link supplies of cost-advantaged U.S. hydrocarbons to the largest domestic and global NGL markets. This additional pipeline takeaway capacity to Mont Belvieu will provide Permian producers the flow assurance they need to continue the unfettered development of their reserves with confidence.”
Husky, the operator and majority owner of the White Rose Field, said it expects production there to ramp up to about 20,000 barrels per day after the start-up.
Producers completed 5,749 wells in Texas from January to July versus 6,514 in the same period last year, the Railroad Commission of Texas said on Aug. 16.
Companies added six oil rigs in the week to Aug. 16, the biggest increase since April, bringing the total count to 770, Baker Hughes, a GE company, said in its weekly report.