Houston-Based Enterprise Products to Build New Cryogenic Natural Gas Processing Plant and Pipelines in Eddy County

1 Oct 2014


CARLSBAD, NM, October 08, 2014 /24-7PressRelease/ -- Eddy County continues to see expanded development within its oil and gas industry. On September 30 Enterprise Products Partners L.P. announced plans for a new cryogenic natural gas processing plant and associated pipelines to be constructed in South Eddy County. According to Enterprise, the new plant would effectively double the company's processing capacity in the Delaware basin to 400 million cubic feet per day ("MMcf/d") of natural gas, with the potential for future expansions. In addition, the plan calls for the construction of 80 miles of new natural gas gathering lines and a 75-mile, 12-inch diameter natural gas liquid ("NGL") pipeline to transport NGLs from the South Eddy plant to the company's NGL fractionation and storage facility in Gaines County, Texas.

Area residents and industry professionals in the Permian Basin have become intimately aware of the substantial growth in the oil and gas operations in Eddy County. Because of the quality of our NGL, Eddy County is one of only two Permian Basin counties that has continued to experience natural gas drilling at a time when most areas across the west are not. In its recent press release, Enterprise pointed out the strength of the play and expressed confidence in the basin's future production. "With multiple production zones providing years of drilling opportunities and the rig count in the region rising, the Delaware Basin is expecting to see NGL-rich natural gas production continue to expand significantly," said A.J. "Jim" Teague, chief operating officer of Enterprise's general partner. "Volumes into our existing facilities in the region have doubled since 2012 and existing infrastructure is operating at capacity."

Local business and government leaders have welcomed the new plant with open arms. "It is tremendous to have Enterprise Products, one of the largest publicly traded partnerships and a leading North American provider of midstream energy services build a new multimillion dollar gas processing plant in Eddy County," said Jay Jenkins, President of the Carlsbad Department of Development ("CDOD"). "Their investment in the energy infrastructure sector complements the many other investments we are seeing in Southeast New Mexico." Eddy County Commission Chairman Tony Hernandez agreed and stated, "We are ecstatic about the new plant that Enterprise is building in Eddy County. The natural gas that is available in our county is a tremendous resource and its development and production helps strengthen our diverse economy here." 

"When you are home to [one of] the largest oil and gas discoveries in the country, and typically lead in the number of rig counts in the Permian Basin, it is important to have the necessary delivery systems to move the product to market," Jenkins added. "We are blessed to live in Southeast New Mexico and have so many positive things happening!"

The CDOD is a member supported, non-profit organization. Members represent over 100 chief executive officers in industry, business and finance, the City of Carlsbad, Eddy County Board of Commissioners, New Mexico State University-Carlsbad, and other organizations. The CDOD is the economic development agency for the City of Carlsbad and Eddy County, New Mexico. The agency promotes the economic and general welfare of the citizens of the City of Carlsbad and Eddy County, New Mexico.