EnLink to Expand Bearkat, Forms Joint Venture with Marathon
The EnLink Midstream companies, EnLink Midstream Partners LP and EnLink Midstream LLC (Dallas), have launched two growth projects to expand operations in West Texas and South Louisiana. The partnership will construct a new natural gas processing plant and expand its rich gas gathering system in the Permian Basin and build a new 30-mile NGL pipeline connecting EnLink’s Riverside fractionation and terminal complex to Marathon Petroleum’s Garyville, La. refinery on the Mississippi River.
The $200-million, 120-MMcfd gas processing plant will be located near EnLink’s existing midstream assets and will offer additional gas processing capabilities to producer customers in the region, including Devon Energy (Oklahoma City). The plant is expected to be operational in the second half of 2015. Upon completion, the partnership’s total operated processing capacity in the Permian Basin will be about 240 MMcfd. As part of the expansion, EnLink has signed a long-term, fee-based agreement with Devon Energy to provide gathering and processing services for more than 18,000 acres under development in Martin County in the Midland Basin. EnLink will construct multiple low-pressure gathering pipelines and a new 23-mile, 12-in. high-pressure gathering pipeline that will tie into the Bearkat natural gas gathering system. The new pipelines are expected to be operational in the first quarter of next year.
EnLink has also entered into a series of agreements with a Marathon Petroleum Corp. subsidiary, MPL Investment LLC, to create a 50-50 joint venture named Ascension Pipeline Co. LLC. The joint venture will build the new 30-mile NGL pipeline. The bolt-on project to EnLink’s Cajun-Sibon NGL system is supported by long-term, fee-based contracts with Marathon. Under the arrangement, EnLink will serve as the construction manager manager and operator of the pipeline, which is expected to be operational in the first half of 2017.
The $200-million, 120-MMcfd gas processing plant will be located near EnLink’s existing midstream assets and will offer additional gas processing capabilities to producer customers in the region, including Devon Energy (Oklahoma City). The plant is expected to be operational in the second half of 2015. Upon completion, the partnership’s total operated processing capacity in the Permian Basin will be about 240 MMcfd. As part of the expansion, EnLink has signed a long-term, fee-based agreement with Devon Energy to provide gathering and processing services for more than 18,000 acres under development in Martin County in the Midland Basin. EnLink will construct multiple low-pressure gathering pipelines and a new 23-mile, 12-in. high-pressure gathering pipeline that will tie into the Bearkat natural gas gathering system. The new pipelines are expected to be operational in the first quarter of next year.
EnLink has also entered into a series of agreements with a Marathon Petroleum Corp. subsidiary, MPL Investment LLC, to create a 50-50 joint venture named Ascension Pipeline Co. LLC. The joint venture will build the new 30-mile NGL pipeline. The bolt-on project to EnLink’s Cajun-Sibon NGL system is supported by long-term, fee-based contracts with Marathon. Under the arrangement, EnLink will serve as the construction manager manager and operator of the pipeline, which is expected to be operational in the first half of 2017.
EnLink Midstream was formed through the merger of Crosstex Energy and substantially all the U.S. midstream assets of Devon Energy. EnLink has operations in many of North America’s oil and gas regions, including the Barnett Shale, Permian Basin, Cana-Woodford Shale, Arkoma-Woodford Shale, Eagle Ford Shale, Haynesville Shale, Utica Shale, Marcellus Shale, and in the Gulf Coast region. Assets include about 7300 miles of gathering and transportation pipelines, 12 processing plants with 3.3 Bcfd of capacity, six fractionators with 180,000 bbld of capacity, barge and rail terminals, product storage facilities, brine disposal wells, a crude oil trucking fleet, and equity investments in private midstream companies.
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