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Released February 05, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Midstream-focused Enterprise Products Partners (NYSE:EPD) (Houston, Texas) said it set a record for natural gas pipeline volumes last year, with much of the support coming from the Permian Basin.
All of its metrics, from gas processing inlet volumes to pipeline volumes, posted gains last year for Enterprise, with much of the lift coming from inlet volumes, which at an average of 7.4 billion cubic feet per day (Bcf/d) marked a 10% increase over 2023 levels.
"The volume growth across our system was largely attributable to natural gas and NGL (natural gas liquids) volume growth associated with our investments in Permian Basin infrastructure and our downstream value chain," the company explained.
Enterprise started construction last year on the Bahia pipeline, designed to carry 600,000 barrels per day in natural gas liquids away from the Permian Basin to the company's fractionation facilities in Mont Belvieu, Texas.
The project joins one of many proposed NGL pipelines in Texas. Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipeline Project Database can click here to learn more about the project.
The Permian Basin, the top inland oil producer in the United States, is also getting gassier. It's the Appalachia Basin, covering parts of West Virginia, Ohio, New York and Pennsylvania, that's the top gas producer at an expected 34.8 Bcf/d for 2025. The Permian, however, is close behind with 26.6 Bcf/d expected this year.
Inland shale basins, which account for the bulk of the oil and gas production in the U.S., are evolving. The so-called gas-to-oil ratio in a reservoir increases as pressure declines due to production. As the pressure drops, heavier hydrocarbons get trapped in subsurface pores, allowing room for lighter products such as natural gas to move into the production well.
That means basins such as the Permian are yielding more natural gas along with oil.
Enterprise last year posted total capital investments of $5.5 billion, and plans for at least $6 billion in capital growth projects this year, including two gas processing facilities in the Permian and support for the Bahia pipeline.
"These projects are supported by long-term contracts and provide visibility to continuing net income and cash flow per unit growth," said A.J. "Jim" Teague, the co-chief executive officer and director at Enterprise Products Holdings LLC.
The company reported net income attributable to common shareholders of $1.6 billion for the fourth quarter, a 3% increase over the same period in 2023. Henry Hub, the U.S. benchmark for the price of natural gas, was suppressed for much of last year on the back of warmer weather and weaker demand.
"This growth in volumes, earnings and cash flow are directly related to the investments we have made in these businesses that continue to benefit from production growth in the Permian Basin as well as increases in domestic and international demand," said Teague.
Early-year prices have rebounded due to a steady string of inclement weather across North America in January. Henry Hub averaged $2.19 per million British thermal units (MMBtu) last year, and it's expected to recover to $3.14 per MMBtu in 2025.
Permian gas production, meanwhile, is expected to increase by around 4% from current levels by 2026.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
All of its metrics, from gas processing inlet volumes to pipeline volumes, posted gains last year for Enterprise, with much of the lift coming from inlet volumes, which at an average of 7.4 billion cubic feet per day (Bcf/d) marked a 10% increase over 2023 levels.
"The volume growth across our system was largely attributable to natural gas and NGL (natural gas liquids) volume growth associated with our investments in Permian Basin infrastructure and our downstream value chain," the company explained.
Enterprise started construction last year on the Bahia pipeline, designed to carry 600,000 barrels per day in natural gas liquids away from the Permian Basin to the company's fractionation facilities in Mont Belvieu, Texas.
The project joins one of many proposed NGL pipelines in Texas. Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipeline Project Database can click here to learn more about the project.
The Permian Basin, the top inland oil producer in the United States, is also getting gassier. It's the Appalachia Basin, covering parts of West Virginia, Ohio, New York and Pennsylvania, that's the top gas producer at an expected 34.8 Bcf/d for 2025. The Permian, however, is close behind with 26.6 Bcf/d expected this year.
Inland shale basins, which account for the bulk of the oil and gas production in the U.S., are evolving. The so-called gas-to-oil ratio in a reservoir increases as pressure declines due to production. As the pressure drops, heavier hydrocarbons get trapped in subsurface pores, allowing room for lighter products such as natural gas to move into the production well.
That means basins such as the Permian are yielding more natural gas along with oil.
Enterprise last year posted total capital investments of $5.5 billion, and plans for at least $6 billion in capital growth projects this year, including two gas processing facilities in the Permian and support for the Bahia pipeline.
"These projects are supported by long-term contracts and provide visibility to continuing net income and cash flow per unit growth," said A.J. "Jim" Teague, the co-chief executive officer and director at Enterprise Products Holdings LLC.
The company reported net income attributable to common shareholders of $1.6 billion for the fourth quarter, a 3% increase over the same period in 2023. Henry Hub, the U.S. benchmark for the price of natural gas, was suppressed for much of last year on the back of warmer weather and weaker demand.
"This growth in volumes, earnings and cash flow are directly related to the investments we have made in these businesses that continue to benefit from production growth in the Permian Basin as well as increases in domestic and international demand," said Teague.
Early-year prices have rebounded due to a steady string of inclement weather across North America in January. Henry Hub averaged $2.19 per million British thermal units (MMBtu) last year, and it's expected to recover to $3.14 per MMBtu in 2025.
Permian gas production, meanwhile, is expected to increase by around 4% from current levels by 2026.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
