Enterprise Products Partners (EPD) said Thursday that Exxon Mobil (XOM) agreed to acquire a 40% stake in its Bahia natural gas liquids pipeline in exchange for a proportionate share of Bahia project costs to date, or ~$650 million.
The 550-mile Bahia line, now in commissioning and expected to enter commercial service shortly, will have an initial capacity to transport 600,000 bbl/day of NGLs from the Midland and Delaware basins in west Texas to Enterprise’s (EPD) Mont Belvieu fractionation hub in Texas.
Enterprise (EPD) and Exxon (XOM) plan to increase Bahia’s capacity to 1 million bbl/day by adding incremental pumping capacity and constructing a 92-mile extension of Bahia to Exxon’s Cowboy natural gas processing plant in New Mexico; Exxon will own a 70% interest in this extension, which is expected to be completed by year-end 2027.
“From 2024 to 2030, NGL production in the Permian Basin is expected to increase by over 30%, [and the Bahia] expansion supports this growth by providing critical takeaway capacity for the basin,” Enterprise (EPD) co-CEO Jim Teague said.