US Enterprise to build Permian Basin NGL pipeline

Author: David Haydon


US Enterprise to build Permian Basin NGL pipelineHOUSTON (ICIS)--Enterprise Products Partners plans to construct a pipeline to transport natural gas liquids (NGL) from the Permian Basin to the company’s NGL fractionation and storage complex in Mont Belvieu, Texas by the second quarter of 2019, Enterprise announced Monday.

The 571-mile (918km) 24-inch diametre (60cm)  pipeline, which the company named Shin Oak, will start at Enterprise’s Hobbs NGL fractionation and storage facility in Gaines County, Texas. Enterprise estimates an initial design capacity of 250,000 bbl/day, which could be expanded to 600,000 bbl/day.

Enterprise added that Shin Oak pipeline will provide takeaway capacity for mixed NGLs extracted at other processing plants in the Permian region, including the company’s planned 300m cubic feet/day (300mcf/day) natural gas processing plant in the Delaware basin of west Texas, scheduled for the second quarter of 2018.