(Reuters) -Enterprise Products Partners said on Thursday that Exxon Mobil will buy a 40% stake in its Bahia natural gas liquids pipeline and help expand the system to handle growing Permian Basin volumes.
Exxon will reimburse about $650 million for its share of the project costs to date, according to a regulatory filing.
The companies plan to boost capacity to 1 million barrels per day after the deal closes, expected by early 2026, by adding pumping stations and building a 92-mile extension to Exxon Mobil’s Cowboy gas processing plant in Eddy County, New Mexico.
The 550-mile Bahia line, now in commissioning, is set to start commercial service soon, moving 600,000 bpd of mixed NGLs from the Midland and Delaware basins to Enterprise’s Mont Belvieu fractionation hub in Texas.
With natural gas liquids output climbing in the Permian, the Exxon Mobil tie-up and New Mexico extension put Bahia in a stronger position to move those fuels to market.
“As the ratio of natural gas and NGL production to crude continues to increase in the Permian, the Bahia pipeline will be an essential artery,” Enterprise co-CEO Jim Teague said, adding that NGL output in the region is expected to grow more than 30% from 2024 to 2030.
The extension, which will also connect to several Enterprise-operated plants in the Delaware Basin, is expected to be completed in the fourth quarter of 2027.
Exxon Mobil’s portion of the project will be called the Cowboy Connector, while Enterprise will operate the combined system.
(Reporting by Yagnoseni Das and Arunima Kumar in Bengaluru; Editing by Anil D’Silva and Tasim Zahid)
