Enterprise Products Partners Announces Major Expansion of Bahia NGL Pipeline and Strategic Joint Interest Agreement with ExxonMobil
Enterprise Products Partners L.P. (NYSE: EPD), one of the largest midstream energy companies in North America, announced a significant strategic development as it entered into an agreement with ExxonMobil to sell a 40-percent undivided joint interest in the company’s Bahia natural gas liquids (NGL) pipeline. The agreement marks a major step in strengthening NGL transportation infrastructure in the Permian Basin, particularly as the region’s production continues its rapid long-term growth. The transaction remains subject to standard regulatory approvals and is expected to close by early 2026.
The Bahia NGL pipeline, spanning approximately 550 miles, is nearing completion and has already entered its commissioning phase. Once commissioning is finalized, the line will begin commercial service shortly thereafter. At startup, Bahia will have the capacity to transport up to 600,000 barrels per day (BPD) of mixed NGLs from the prolific Midland and Delaware basins of West Texas to Enterprise’s extensive Mont Belvieu fractionation complex—the largest NGL fractionation hub in the world. This infrastructure plays a critical role in processing and fractionating NGL streams into key components such as ethane, propane, butanes and natural gasoline, which are then utilized across petrochemical, industrial, commercial, and export markets.
Following the closing of the transaction, Enterprise and ExxonMobil will pursue a major expansion of the Bahia system. The companies plan to increase the pipeline’s overall capacity from 600,000 BPD to 1 million BPD. This expansion will include the addition of incremental pumping capacity as well as the construction of a new 92-mile pipeline extension—an important project element that will further integrate the system with upstream infrastructure in the region. This extension will connect the Bahia pipeline directly to ExxonMobil’s Cowboy natural gas processing plant in Eddy County, New Mexico, a major facility serving production from the northern Delaware Basin.
The new segment will also provide connectivity to multiple Enterprise-owned gas processing facilities throughout the Delaware Basin, increasing market access and flow optionality for producers.
Once built, the extended and expanded system will operate under Enterprise’s management, with ExxonMobil’s stake specifically associated with what is being designated as the “Cowboy Connector.” The companies expect the expansion and the 92-mile extension to be fully completed and operational by the fourth quarter of 2027, supporting long-term production growth trends in the Permian Basin.
A.J. “Jim” Teague, co-chief executive officer of Enterprise’s general partner, emphasized the importance of this partnership and infrastructure project in addressing evolving production trends. “We are pleased to partner with ExxonMobil on the Bahia NGL pipeline,” Teague said. “As the ratio of natural gas and NGL production to crude oil production continues to increase in the Permian, the Bahia pipeline will be an essential artery to deliver mixed NGLs to the fractionation complex in Mont Belvieu. From 2024 to 2030, NGL production in the Permian Basin is expected to increase by over 30 percent. This expansion supports this growth by providing critical takeaway capacity for the basin.”
His remarks reflect a broader industry trend: while crude oil output in the Permian continues to grow steadily, natural gas and NGL production in the region is increasing at an even faster rate. This shift underscores the need for expanded midstream infrastructure capable of transporting and processing these valuable hydrocarbons. Without sufficient takeaway capacity, producers face risks of bottlenecks, flaring, and restricted production. The Bahia expansion aims directly at mitigating these challenges.
The Bahia system also brings strategic advantages beyond simple capacity. By connecting gathering and processing infrastructure across the Delaware Basin with the Mont Belvieu hub, the system enhances logistical efficiency, reduces transportation costs, and ensures more reliable market access for NGLs. Mont Belvieu, home to Enterprise’s vast network of fractionators, storage caverns, and export facilities, represents a cornerstone of the U.S. NGL value chain. Strengthening connections to this complex improves the entire midstream ecosystem supporting the Permian.
In addition to providing substantial physical infrastructure, the partnership between Enterprise and ExxonMobil represents further consolidation of expertise and investment in critical midstream assets. ExxonMobil, a dominant producer in the Permian Basin, continues to expand its footprint across both upstream and midstream segments, ensuring that the company has dedicated pathways to move growing NGL volumes. Enterprise, meanwhile, benefits from both shared investment and long-term throughput commitments that increase system utilization and capital efficiency.
Enterprise Products Partners L.P. continues to maintain its position as one of the largest and most diversified midstream partnerships in the United States. The company provides a full suite of essential services to producers and consumers of natural gas, NGLs, crude oil, petrochemicals, and refined products. Its range of operations includes natural gas gathering, treating, processing, transportation, and storage; NGL transportation, fractionation, storage, and marine terminal operations; crude oil gathering and logistics; petrochemical transportation and storage; refined product services; and a marine transportation business that operates across key U.S. inland and intracoastal waterways.
The scale of Enterprise’s asset base is extensive. The partnership owns and operates more than 50,000 miles of pipelines, over 300 million barrels of storage capacity for NGLs, crude oil, refined products, and petrochemicals, and approximately 14 billion cubic feet of natural gas storage capacity. This broad network allows Enterprise to serve as a backbone for North American energy markets, providing reliable infrastructure that connects production regions to processing hubs and end-use markets including the growing export sector.
The Bahia pipeline expansion and ExxonMobil’s participation underscore both companies’ ongoing commitment to supporting the continued growth of the Permian Basin, currently the most prolific oil and gas producing region in the United States. As production rises and midstream needs intensify, strategic investments like this one will be essential in maintaining market balance, reducing constraints, and ensuring efficient delivery of NGLs to domestic and international consumers.
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