Enterprise Products Partners L.P. announced the construction of a new 571-mile pipeline to transport growing volumes of natural gas liquids (NGL) from the Permian Basin to Enterprise’s NGL fractionation and storage complex in Mont Belvieu, Texas. The Shin Oak NGL pipeline will originate at Enterprise’s Hobbs NGL fractionation and storage facility in Gaines County, Texas. The 24-inch diameter pipeline will have an initial design capacity of 250,000 barrels per day (BPD), expandable to 600,000 BPD. This project is expected to be in service in the Q2 2019.
In addition to mixed NGL supplies aggregated at the Hobbs facility, the Shin Oak pipeline will provide takeaway capacity for mixed NGLs extracted at natural gas processing plants in the Permian region, including two Enterprise facilities that began service in 2016 and the Orla I plant that is scheduled to begin operations in the Q2 2018. This new pipeline will also increase the company’s capacity to transport purity NGL products from Hobbs to Mont Belvieu.
Mont Belvieu is pipeline-connected to the expanding U.S. petrochemical industry on the Gulf Coast, as well as Enterprise’s industry-leading LPG and ethane deepwater marine export terminals on the Houston Ship Channel.