Wedoany.com Report-Nov. 24, Enterprise Products Partners has reached an agreement with ExxonMobil regarding the Bahia natural gas liquids (NGL) pipeline. ExxonMobil will acquire a 40% undivided joint interest in the pipeline system.

Pipeline commissioning activities have begun, with commercial operations commencing soon after.

The Bahia pipeline extends 550 miles from the Permian Basin in West Texas to Enterprise’s large NGL fractionation and storage complex at Mont Belvieu, Texas. It has an initial design capacity of 600,000 barrels per day and is currently in the commissioning phase, with commercial service expected to begin shortly.

The transaction is anticipated to close in early 2026, pending regulatory approval. Following closing, the partners plan to expand total capacity to one million barrels per day through additional pumping stations. A new 92-mile lateral extension will also be constructed from the main line to ExxonMobil’s Cowboy natural gas processing plant in Eddy County, New Mexico, while connecting to multiple Enterprise-owned processing plants in the Delaware Basin. Enterprise will operate the entire system.

The capacity expansion and pipeline extension are targeted for completion in the fourth quarter of 2027.

A.J. Teague, co-CEO of Enterprise Products Partners, stated: “We are pleased to partner with ExxonMobil on the Bahia NGL pipeline.

“As the ratio of natural gas and NGL production to crude oil production continues to increase in the Permian, the Bahia pipeline will be an essential artery to deliver mixed NGLs to the fractionation complex in Mont Belvieu.

“From 2024 to 2030, NGL production in the Permian Basin is expected to increase by over 30%. This expansion supports this growth by providing critical takeaway capacity for the basin.”

The project will transport growing volumes of NGLs produced in the Midland and Delaware basins to downstream fractionation, storage, and export facilities on the U.S. Gulf Coast.

ExxonMobil noted that the expanded pipeline will link its increasing Permian Basin output to refining and petrochemical plants along the Gulf Coast, enhancing supply-chain efficiency and operational flexibility.

Enterprise Products Partners provides a range of midstream energy services across North America, including natural gas gathering, processing, NGL transportation, fractionation, and storage.

The agreement supports continued development of infrastructure needed to handle rising natural gas liquids production in one of the most active hydrocarbon basins in the United States.