Exxon Acquires 40% Stake in Enterprise’s Bahia NGL Pipeline, Plans 92-Mile Permian Extension
Enterprise and ExxonMobil will boost the Bahia NGL pipeline to 1 million bpd and build a 92-mile New Mexico extension serving the Permian Basin under a new joint-interest agreement expected to close in early 2026.
(P&GJ) — Enterprise Products Partners has signed an agreement for ExxonMobil to acquire a 40% undivided joint interest in the company’s Bahia natural gas liquids (NGL) pipeline, a 550-mile system now entering commissioning in West Texas. The transaction is expected to close by early 2026, pending regulatory approvals.
The Bahia line will begin commercial service immediately after commissioning, launching with 600,000 barrels per day (bpd) of NGL capacity from the Midland and Delaware basins to Enterprise’s Mont Belvieu fractionation complex.
Once the deal closes, Enterprise and ExxonMobil plan a major expansion that will lift total system capacity to 1 million bpd. The project includes incremental pumping capacity and construction of a 92-mile extension linking the Bahia system to ExxonMobil’s Cowboy natural gas processing plant in Eddy County, New Mexico. The extension will also connect to several Enterprise-owned processing facilities in the Delaware Basin. Enterprise will operate the expanded system, which the companies expect to place in service in the fourth quarter of 2027.
“We are pleased to partner with ExxonMobil on the Bahia NGL pipeline,” said A.J. “Jim” Teague, co-chief executive officer of Enterprise’s general partner. “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.”
Teague added that Permian NGL output is projected to grow more than 30% between 2024 and 2030, making the expansion critical for future takeaway needs.
Enterprise describes the Bahia expansion as part of its broader strategy to provide integrated midstream services across its 50,000-mile pipeline network, 300 million barrels of storage capacity and natural gas storage system.