Enterprise Announces Permian Growth Projects; Seminole Pipeline to Be Taken out of Crude Oil Service

Enterprise Products Partners L.P. (NYSE: EPD) (“Enterprise”) today announced four new capital projects to support continuing production growth in the Permian Basin. The partnership also announced it has begun initial steps to return the Seminole Pipeline, which has a capacity of 210,000 barrels per day (“BPD”) of crude oil, to natural gas liquid (“NGL”) transportation service in December 2023. The four projects include two natural gas processing plants, the Bahia NGL pipeline, NGL fractionator 14 and an associated deisobutanizer (“DIB”) at Enterprise’s Chambers County, Texas complex. Each of these projects is expected to begin service during 2025.

Enterprise believes crude oil, natural gas and NGL production in the Permian Basin will continue to grow throughout the decade. Consistent with certain industry forecasts and current production trends, Enterprise’s fundamentals group forecasts crude oil production in the Permian Basin is on track to increase by over 700,000 BPD in 2023 and to grow by approximately 1.5 million BPD for the three-year period ending 2025. Post 2025, the company expects crude oil production from the basin to increase by up to another 15 percent, or greater than 1.0 million BPD, reaching in excess of 7.5 million BPD by the end of 2030. Commensurate with these levels of crude oil production, the partnership believes NGL production from the basin is on track to increase more than 200,000 BPD in 2023, and grow by 700,000 BPD for the three-year period ending 2025. From 2025 to 2030, Enterprise believes NGL production from the Permian could grow by more than 500,000 BPD to nearly 4.0 million BPD by the end of 2030.

Enterprise has started construction on the Mentone 4 natural gas plant serving the Delaware Basin. Mentone 4 will have the capacity to process over 300 million cubic feet per day (“MMcf/d”) of natural gas to extract more than 40,000 BPD of NGLs. This plant is expected to begin service in the second half of 2025. Construction of Mentone 2, which also has the capacity to process in excess of 300 MMcf/d of natural gas, was completed earlier this month and has begun operations. The previously announced Mentone 3 natural gas processing plant, which also has the capacity to process over 300 MMcf/d, is currently under construction and scheduled to begin service in the first quarter of 2024. Upon the completion of Mentone 3 and Mentone 4, Enterprise will have approximately 2.5 billion cubic feet per day (“Bcf/d”) of natural gas processing capacity in the Delaware Basin capable of extracting more than 330,000 BPD of NGLs.