Enterprise Products Partners LP expanded its natural gas processing capacity in the Permian Basin.
The midstream giant brought its new Poseidon cryogenic gas processing plant online in Glasscock County, Texas, Enterprise announced in a July 18 press release.
With a nameplate capacity of 300 million cubic feet per day (MMcf/d), the new Poseidon plant is Enterprise’s sixth in the Permian’s Midland Basin. The asset is capable of extracting over 40,000 bbl/d of NGL.
Starting up Poseidon boosts Enterprise’s gas processing capacity up to 1.3 billion cubic feet per day (Bcf/d) and NGL extraction capacity to over 185,000 bbl/d in the Midland Basin.
“For the foreseeable future, the Permian Basin is expected to drive domestic production of crude oil, natural gas and [NGL], and the expansion of our midstream network will support producers as they meet growing demand in the U.S. and internationally,” Enterprise Co-CEO Jim Teague said. “The Poseidon gas plant is among $3.8 billion of major growth projects expected to begin service and generate new sources of cash flow by the end of 2023.”
Enterprise is building a seventh processing plant in the Midland Basin—the Leonidas plant—which will also have a capacity to process 300 MMcf/d of natural gas and extract over 40,000 bbl/d of NGL. The Leonidas plant is expected to enter service in the first quarter of 2024.
With both Poseidon and Leonidas online, Enterprise anticipates having an aggregate 1.6 Bcf/d of gas processing capacity and over 220,000 bbl/d of NGL production capacity in the Midland Basin.
The sixth and seventh plants in the Midland Basin represent an expansion of the assets Enterprise purchased in its $3.25 billion acquisition of Navitas Midstream Partners LLC last year.
The company is building out two similar processing plants in the Permian’s Delaware Basin. Those assets, the Mentone II and III plants, are expected to start up in the fourth quarter of 2023 and first quarter of 2024.
E&Ps primarily drill in the Permian Basin for crude oil, but E&Ps are dealing with larger volumes of associated gas from oil wells as the play matures over time.
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