Enterprise Products Partners has started operations on its 919km long Shin Oak natural gas liquids pipeline (Shin Oak NGL Pipeline) in Texas, less than two years of the project announcement.
The NGL transportation through the Shin Oak NGL Pipeline commenced through its mainline from Orla in Reeves County to the company’s NGL fractionation and storage complex at the Mont Belvieu hub.
The initial capacity of the 24-inch diameter NGL pipeline is about 250,000 barrels per day (BPD), which is eventually expected to be expanded to about 550,000 BPD of capacity upon full commissioning of the project. The NGL pipeline is expected to be fully completed in the fourth quarter of this year.
According to Enterprise Products, the Shin Oak NGL Pipeline offers takeaway capacity for growing NGL production from various basins, including the Permian, where NGL volumes are estimated to almost double within the next three years.
The company’s next target is to complete an associated 20-inch diameter Waha lateral of the pipeline in the second quarter.
Enterprise’s general partner CEO A.J. “Jim” Teague said: “The Shin Oak Pipeline represents another important addition to our expanding network of integrated midstream assets in the Permian Basin.
“Shin Oak provides not only a much needed takeaway option for NGLs, but facilitates growing production of other hydrocarbons in one of the most prolific producing areas in the world, and gives producers access to the most attractive domestic and global markets.”
Enterprise revealed that upon full completion of the full pipeline infrastructure, NGLs for Shin Oak Pipeline will be mainly sourced from its Orla natural gas processing complex and also from a dedicated acreage in the Alpine High development.
The Orla gas processing facility commenced operations last year and will have a third train entering into production in the second quarter of 2019. It will be followed by the Mentone natural gas processing plant which has an expected start-up date in the first quarter of 2020.
Put together, the facilities will increase the natural gas processing capacity of Enterprise to over 1.6 billion cubic feet per day along with more than 250,000 BPD of NGL production capabilities in the Permian Basin.