By TONI ELLINGTON
Enterprise Products Partners, L.P. (“Enterprise”) and Occidental Petroleum Corporation (“Occidental”) announced an agreement to jointly develop a new cryogenic natural gas processing plant. The plant, which will have a capacity of 150 million cubic feet per day of natural gas, will serve the Delaware Basin in west Texas and southern New Mexico. Construction is scheduled to begin in mid-2016.
The plant will be owned by Delaware Basin Gas Processing, LLC, a company which is owned 50/50 by Enterprise and Occidental.
Cryogenic natural gas processing consists of dropping temperatures of the gas stream to approximately minus 120 degrees Fahrenheit. The temperature drop condenses ethane and other hydrocarbons in the gas stream, allowing 90 to 95% of the ethane to be recovered.
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