Enterprise added new gas and liquids processing during Q2 and is on pace to add 900 MMcd/d of additional processing capacity through Q1 2024.
Enterprise July 18 announced the startup of its new 300 MMcf/d Poseidon cryogenic gas-processing facility, for which capacity is sold out. Poseidon can process more than 40,000 b/d of NGLs and is the company’s sixth processing facility in the Midland Basin, where it maintains a total of 1.3 Bcf/d of processing capacity.
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Construction is ongoing and on schedule on three additional processing facilities in the Permian, the company said Aug. 1.
Enterprise plans to complete plants two and three at its Mentone gas-processing facility in the Delaware Basin in Q4 2023 and Q1 2024, respectively. The plants together will have a nameplate capacity of 600 MMcf/d and extract 80,000 b/d of NGLs.
Enterprise’s 300 MMcf/d Leonidas cryogenic gas-processing plant in the Midland Basin is also currently under construction and scheduled to begin service in Q1 2024.
The three additional facilities will spread the company’s Permian gas processing footprint across 16 plants, with the capacity to process 3.8 Bcf/d and extract more than 520,000 b/d of NGLs, said Jim Teague, co-CEO of Enterprise’s general partner, Enterprise Products Holdings.
Teague talked up the advantages of constructing assets instead of acquiring them by way of a merger and acquisition.
“One of the things about building plants is you can build them where you want them. That’s what I love about building all these plants in the Permian, and we’re probably not through building,” Teague said.
Enterprise has pegged estimated organic capital project spending at $2.5 billion for 2024, with approved projects accounting for about $1.4 billion of the total year to date.
Brent Secrest, executive vice president and chief commercial officer of Enterprise Products Holdings, identified the Permian Basin as Enterprise’s sole area of focus for the remainder of those capital dollars.
“I think everything is going to be centered around the Permian Basin, so whether that’s an NGL pipe solution, whether that’s processing plants, or whether that’s an additional fractionator. It’s going to be all centered around Permian production growth,” Secrest said.
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