HOUSTON--(BUSINESS WIRE)--Enterprise Products Partners L.P. (NYSE: EPD) today announced that the company is adding 300 million cubic feet per day (“MMcf/d”) of incremental capacity at its cryogenic natural gas processing facility currently under construction near Orla, Texas in Reeves County. Orla II, a second processing train at the facility, will double the inlet capacity of the facility to 600,000 MMcf/d and increase extraction of natural gas liquids (“NGLs”) from 40,000 barrels per day (“BPD”) to 80,000 BPD.
NGLs from Orla will be delivered into Enterprise’s fully integrated NGL system, including the recently announced Shin Oak Pipeline. The Shin Oak Pipeline is a 24-inch NGL pipeline that will originate at the partnership’s Hobbs NGL fractionation and storage facility in Gaines County, Texas and will transport Permian Basin NGLs to the partnership’s Mont Belvieu NGL complex. Shin Oak will have an initial capacity of 250,000 BPD and will be expandable to 600,000 BPD. Orla’s residue natural gas volumes will be transported to the Waha area through Enterprise’s Texas Intrastate system. The Orla II expansion project is designed to support the continued growth in NGL-rich natural gas production from the Delaware Basin of West Texas and southeastern New Mexico and is supported by long-term commitments.
“This project is a perfect example of Enterprise’s business philosophy of leveraging its integrated midstream network to link supplies and markets,” said A.J. “Jim” Teague, chief executive officer of Enterprise’s general partner. “By providing direct access to our extensive natural gas and NGL pipeline infrastructure, Enterprise gives Delaware Basin producers connectivity to a full slate of services and end users along the Gulf Coast, including petrochemical operators who are building new facilities and export customers with a strong appetite for U.S. production.”
The expansion of the Orla facility will bring the partnership’s total natural gas processing capacity to more than 1 billion cubic feet per day of processing capacity and more than 150,000 BPD of NGL extraction capacity in the Permian Basin. The Orla II capacity is expected to be available in the third quarter of 2018.
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 export and import terminals; crude oil gathering, transportation, storage, export and terminals; petrochemical and refined products transportation, storage and terminals; and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems. The partnership’s assets include approximately 50,000 miles of pipelines; 260 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.