Enterprise Expands Operations in Permian Basin

Enterprise Expands Operations in Permian Basin

Enterprise Products Partners LP has announced that it is investing in a series of new projects to further expand its existing natural gas processing and gathering systems in the Delaware and Midland sub-basins of the Permian basin.

The four growth projects include the addition of two new natural gas processing plants. One is the Mentone 4 natural gas plant in the Delaware basin, while the other is the Orion natural gas processing plant in the Midland basin.

In the Delaware basin, Enterprise has started construction of a fourth 300 mmcf/d gas processing plant at its existing Mentone complex in Texas. Known as Mentone 4, the new plant—which will also enable 40,000 bbl/d of incremental NGL extraction—is scheduled to begin service during the second half of 2025.

The announcement of the new Mentone 4 project follows Enterprise’s Oct. 31 confirmation of its completion and official startup of the 300 mmcf/d Mentone 2 plant earlier in October 2023, as well as ongoing construction of the 300 mmcf/d Mentone 3 plant that remains on schedule for commissioning during the first quarter of 2024.

Once in operation, the Mentone 3 and Mentone 4 plants will increase Enterprise’s overall Delaware basin gas processing and NGL extraction capacities to about 2.5 bcf/d and 330,000 b/d, respectively.

To expand its network of Midland basin assets, Enterprise has also started construction of an eighth gas processing plant in the region. The 300 mmcf/d Orion plant, which will also be equipped with 40,000 bbl/d of NGL extraction capability, is scheduled for completion during the second half of 2025, following the anticipated startup of the previously announced 300 mmcf/d Leonidas plant during the first quarter of 2024.

The new Orion and Leonidas plants will boost the operator’s overall Midland basin gas processing and NGL extraction capabilities to about 1.9 bcf/d and 270,000 bbl/d, respectively.

Notably, Enterprise previously commissioned the 300-mmcf/d Poseidon plant, its sixth gas plant in the Midland basin, in July 2023.

Moreover, the company aims to move back to transporting natural gas liquids through its Seminole Red pipeline, which has a capacity of 210,000 bbl/d and is estimated to come online by December 2023.

“These projects bring our total portfolio of facilities under construction to $6.8 billion. These attractive investments are core to our NGL franchise and provide further visibility to increasing cash flow per unit, which will support future distribution growth and returns of capital to investors,” said A.J. Jim Teague, co-chief executive officer of Enterprise’s general partner, upon the release of the company’s third-quarter 2023 earnings report.

“The organic investments we are announcing today are necessary to facilitate the next phase of Permian production growth and will also complement our expansions of downstream pipelines and marine terminals to deliver energy products to growing domestic and international markets,” Teague added.

Enterprise forecasts its crude oil production in the Permian will increase by more than 700,000 bbl/d in 2023, growing by nearly 1.5 million bbl/d by 2025, and extending to 7.5 million bbl/d by 2030.

Meanwhile, Enterprise forecasts its NGl will increase in the Permian basin by over 200,000 bbl/d in 2023, growing by nearly 700,000 bbl/d by 2025, and extending to 4.0 million bbl/d by 2030.

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Doaa Ashraf 483 Posts

Doaa is a staff writer with a Bachelor's Degree in Mass Communication, majoring Journalism from Ahram Canadian University. She has 2-3 years of experience in copywriting, and content creation.

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