CARLSBAD — A Houston-based company will build a new cryogenic natural gas processing plant and pipelines south of Loving, a project Carlsbad Department of Development Executive Director John Waters called “a monster transition line.”
Enterprise Products Partners LP announced Monday it will begin construction on 80 miles of new natural gas gathering lines and a 75-mile, 12-inch diameter natural gas liquids (NGL) pipeline to transport NGLs from the southern Eddy County plant to the company’s storage facility in Gaines County, Texas.
Enterprise Products expects the new plant to be completed and in operation by the first quarter of 2016. The project will effectively double the company’s processing capacity in the Delaware Basin from 200 to 400 million cubic feet per day, with the potential of future expansion.
“The addition of this new cryogenic natural gas processing facility to our integrated midstream network provides producers in this prolific region improved flow assurance and additional market choices, including access to expanding petrochemical facilities and export opportunities along the Gulf Coast,” A.J. “Jim” Teague, chief operating officer of Enterprise Products Holdings LLC, said in a news release.
Enterprise Products Partners is a natural gas and crude oil pipeline company based in Houston. The company reported managing an asset base of $41 billion in March.
Waters said he was happy to see continued expansion of the oil and gas industry in the most southern portion of Eddy County.
“In addition to the existing stuff, it’s really nice to see both oil and gas producing,” Waters said. “(NGL) is a premium product and it’s much more useful to the industry. We see this as a step right direction.”
Waters said Enterprise Products chose New Mexico as the location for its new plant and pipeline system over Reeves County, Texas, which was also in the running for the project.
Reporter Zack Ponce can be reached at 575-689-7402.
©2014 the Carlsbad Current-Argus (Carlsbad, N.M.)
Visit the Carlsbad Current-Argus (Carlsbad, N.M.) at www.currentargus.com
Distributed by MCT Information Services