Enterprise Products Partners LP will farm out 40 percent of the Bahia natural gas liquids (NGLs) pipeline to Exxon Mobil Corp, in a deal expected to be completed “early 2026” subject to regulatory approvals, Enterprise said Thursday.
“The 550-mile Bahia pipeline, which has begun commissioning activities and will begin commercial operations immediately thereafter, will have an initial capacity to transport 600,000 barrels per day (bpd) of NGLs from the Midland and Delaware basins of West Texas to Enterprise’s Mont Belvieu fractionation complex”, the Houston, Texas-based oil and gas midstream company said in a press release.
A.J. Teague, co-chief executive of Enterprise’s general partner Enterprise Products Holdings LLC, earlier said in Enterprise’s quarterly report the pipeline was on track to start operations this month.
“Upon closing of the transaction, Enterprise and ExxonMobil plan to increase Bahia’s capacity to one million bpd by adding incremental pumping capacity and constructing a 92-mile extension of Bahia to ExxonMobil’s Cowboy natural gas processing plant in Eddy County, New Mexico”, Enterprise added. “The extension will also connect to multiple Enterprise-owned processing facilities in the Delaware Basin.
“The expansion and extension are expected to be completed in the fourth quarter of 2027, with ExxonMobil’s interest referred to as the ‘Cowboy Connector’. Enterprise will serve as operator of the combined system”.
NGL, crude oil, refined products petrochemical pipeline volumes totaled 8.4 million bpd, up from 7.8 million bpd in Q3 2024.
Enterprise does business in natural gas gathering, treating, processing, transport and storage; NGL transportation, fractionation, storage and terminalling; crude oil gathering, transport, storage and terminalling; petrochemical and refined products production, transport, storage and terminaling. It says it gas over 50,000 miles of pipelines; over 300 million barrels of storage capacity for NGLs, crude, refined products and petrochemicals; and 14 billion cubic feet of natural gas storage capacity.
Also on Thursday Enterprise said its general partner’s board had elected Michael C. Hanley, who joined Enterprise 2006, as executive vice president and chief commercial officer effective December.
“We believe Enterprise has assembled one of the most knowledgeable and innovative commercial teams in the midstream energy industry”, said Teague.
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