Martin Midstream announces West Texas NGL expansion
Martin Midstream Partners LP announced that the West Texas LPG Pipeline Ltd. Partnership JV plans to invest approximately $200 MM to expand its NGL system into the Delaware Basin, which is part of the larger Permian Basin.
MMLP owns a 20% interest in the JV, with ONEOK Inc. owning and operating the other 80% interest. The project is anticipated to be in service by the third quarter of 2018.
The project is supported by dedicated NGL production from two third-party planned gas processing plants in northern Reeves County, one of the most active areas in the Delaware Basin.
The expansion will be supported by long-term volume dedications estimated to be up to 40 Mbpd.
The Delaware Basin extension includes the construction of an approximately 120-mi, 16-in. pipeline lateral that will have an initial capacity of 110 Mbpd.
It will also include the construction of two new pump stations and a pipeline looping along the existing West Texas LPG system, which will increase its capacity to handle the dedicated volume.
West Texas LPG Pipeline is an interstate NGL pipeline system that consists of approximately 2,600 mi of NGL pipeline in Texas and New Mexico.
The system provides transportation services to the Mont Belvieu market center from nearly 40 third-party natural gas processing plants located in the Permian Basin.
The Permian Basin in southeastern New Mexico and western Texas is the largest natural gas and crude oil producing basin in the US.
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