Martin Midstream Partners L.P. announced today that the West Texas LPG Pipeline Limited Partnership joint venture (of which MMLP owns a 20% interest with ONEOK, Inc. owning and operating the other 80% interest) plans to invest approximately $200 million to expand its natural gas liquids (NGL) system into the prolific Delaware Basin, part of the larger Permian Basin, in service by the third quarter 2018.
This project is supported by dedicated NGL production from two third-party planned natural 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 40,000 barrels per day.
The Delaware Basin extension includes:
- The construction of an approximately 120-mile, 16-inch pipeline lateral that will have an initial capacity of 110,000 bpd; and
- The construction of two new pump stations and pipeline looping along the existing West Texas LPG system that will increase its capacity to handle the dedicated volume.
“When entering into the joint venture with Oneok in 2014, significant NGL volume growth was at the forefront of our investment thesis. The extension of the West Texas LPG Pipeline into the core of the Delaware Basin ideally positions us for this growth,” said Ruben S. Martin III, MMLP President and Chief Executive Officer.
West Texas LPG Pipeline is an interstate NGL pipeline system that consists of approximately 2,600 miles 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 crude oil and natural gas producing basin in the U.S.
