EnLink Expands Midstream Footprint In Permian Basin

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EnLink Midstream Partners LP will expand its natural gas gathering and processing system in the Permian Basin by constructing a new natural gas processing plant and expanding its rich gas gathering system. The new 120 MMcf/d gas processing plant will be strategically located near the partnership’s existing midstream assets and will offer additional gas processing capabilities to producer customers in the region, including Devon Energy. The processing plant is expected to be operational in the second half of 2015. As a part of the expansion, the partnership has signed a long-term, fee-based agreement with Devon Energy to provide gathering and processing services for over 18,000 acres under development in Martin County, one of the premier production locations in the Midland Basin. The partnership will construct multiple low pressure gathering pipelines and a new 23-mile, 12-inch high pressure gathering pipeline that will tie into the previously announced Bearkat natural gas gathering system. The new pipelines are expected to be operational in the first quarter of 2015.
  The partnership also announced that it has entered into a series of agreements with MPL Investment LLC, a subsidiary of Marathon Petroleum Corp., to create a 50/50 joint venture named Ascension Pipeline Co. LLC. This joint venture will build a new 30-mile natural gas liquids (NGL) pipeline connecting the partnership’s existing Riverside fractionation and terminal complex to Marathon Petroleum’s Garyville refinery located on the Mississippi River. The bolt-on project to the partnership’s Cajun-Sibon NGL system is supported by long-term, fee-based contracts with Marathon Petroleum. Under the arrangement, the partnership will serve as the construction manager and operator of the pipeline project, which is expected to be operational in the first half of 2017.