Texas Continues NGL Pipeline Dominance with $2.3 Billion in Third-Quarter Project Kickoffs

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Lone Star State is not surrendering its top spot in the U.S. natural gas liquids (NGL) pipeline market anytime soon. With the Permian Basin finally seeing some takeaway relief, and transmission demand only growing along the Gulf Coast, midstream companies have their work cut out for them. Industrial Info is tracking nearly $2.3 billion in NGL pipeline projects that are set to begin construction in Texas from July through September, the bulk of which are located in and around the Permian Basin.

Click on the image at right for a graph detailing the top 10 Texas counties for NGL pipeline project activity next quarter, by investment value.

Recent pipeline capacity additions have reduced some of the takeaway constraints that developed in the Permian Basin last year, bolstering crude-oil prices in the region. More pipelines are slated to be brought online next quarter, and still more are planned to begin construction, including Permico Energia LLC's (Houston, Texas) Texas NGL Pipeline Project, which will carry between 175,000 and 330,000 barrels per day (BBL/d) to the Corpus Christi area. The NGL, which also will be gathered from the Delaware and Eagle Ford basins, will be processed into purity products for sale in Texas and international markets.

Two major segments of the Texas NGL Pipeline are set to begin construction this summer: the $750 million segment from the Permian Basin to Corpus Christi, which runs 510 miles, and the $350 million segment from Corpus Christi to Mont Belvieu, which runs 230 miles. The two segments will meet at Permico Energia's $100 million El Centro NGL fractionator in Corpus Christi, which has a capacity of 150,000 BBL/d. For more information, see Industrial Info's project reports on the Permian Basin-to-Corpus Christi segment, the Corpus Christi-to-Mont Belvieu segment, and the El Centro fractionator.

In addition to the two mainline segments, Industrial Info is tracking the construction of eight pump stations throughout Texas to service Permico's project. WHC Incorporated (Broussard, Louisiana) is serving as general contractor; as with the two mainlines, UniversalPegasus International (UPI) (Houston, Texas), a subsidiary of Huntington Ingalls Industries (NYSE:HII) (Newport News, Virginia), is performing design-engineering services. The eight stations are located in or near the Texas cites of:

• Monahans
• Fort Stockton
• Brackettville
• Pearsall
• Three Rivers
• Refugio
• Lolita
• Placedo

Enterprise Products Partners LP (NYSE:EPD) (Houston) is spearheading a slew of pipeline projects traversing Texas, including the estimated $80 million Mentone Pipeline, which is designed to transport 40,000 BBL/d of NGL from Mentone to Orla, Texas, running about 66 miles. It will be supported by an estimated $35 million pump station in Mentone. Both projects are still in their planning phases, where plenty of factors could delay, alter or eliminate investment. For more information, see Industrial Info's project reports on the pipeline and pump station.

Enterprise is nearing construction kickoff on a pair of pump stations for its $1 billion Shin Oak NGL Pipeline system, which originates in the Permian Basin and will carry 550,000 BBL/d (expandable to 600,000 BBL/d) of NGL nearly 600 miles to Enterprise's fractionation complex in Mont Belvieu: a $30 million pump station in Conroe and a $30 million pump station in Mullin. The pipeline began construction in fourth-quarter 2018 and is expected to wrap up toward the end of the year; the pump stations are expected to wrap up in first-quarter 2020. For more information, see Industrial Info's project reports on the pipeline, Conroe station and Mullin station.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.