There can be no understating the profound impact of the remarkable expansion of the United States energy market on the global sector. The United States is now the number one natural gas producer by capacity in the world, and has plans to expand the market even further this year. To meet the needs of the expanding market, Enterprise Products has increased the Bahia NGL pipeline capacity by 400,000 bpd with notable support from ExxonMobil.
Enterprise Products aims to increase its already substantial pipeline capacity
Enterprise Products offers a wide range of services to the litany of customers the company has built over the years. Offering essential midstream services, including the gathering, treatment, transportation, and storage of natural gas, the company has become one of the largest publicly traded partnerships in the United States.
Alongside the company’s natural gas services, Enterprise offers crude oil gathering, transportation, and storage, which has become a major necessity as the US market grows exponentially. The company has significant assets in the US, including but not limited to:
- over 50,000 miles of pipelines
- 300 million barrels of storage capacity for NGLs, crude oil, refined products, and petrochemicals
- 14 billion cubic feet of natural gas storage capacity
Can Enterprise Products foster a positive relationship with its new partner on the Bahia pipeline?
A recent press release stated that the company has executed a new agreement with one of the largest energy companies in the world, ExxonMobil. Exxon will now acquire a 40% undivided joint interest in the 550-mile Bahia natural gas liquids pipeline, once all the regulatory approvals have been given, that is.
The Bahia NGL Pipeline began commissioning activities towards the tail end of last year and will play a vital role in the transportation of essential energy resources to support the rapid expansion of the United States energy industry this year.
“We are pleased to partner with ExxonMobil on the Bahia NGL pipeline.” – A.J. “Jim” Teague, co-chief executive officer of Enterprise’s general partner
How will the increased capacity at the Bahia NGL Pipeline affect the US energy expansion?
Well, it certainly will have an effect, to say the least. Upon the closing of the transaction with ExxonMobil, Enterprise is now planning to increase the Bahia NGL Pipeline by an astonishing 400,000 bpd to reach a new capacity of 1 million bpd.
This increase has been achieved by adding incremental pumping capacity to the pipeline, along with a 92-mile extension to reach Exxon’s Cowboy natural gas processing plant in Eddy County, New Mexico.
The additional expansion and extension of the pipeline is expected to be completed by Q4 of 2027, after which Enterprise and ExxonMobil will evaluate further agreements to continue the new expansionary relationship between the two companies. ExxonMobil is taking the expansion lessons learned and is applying them to other developments outside the US, namely a refinery expansion in the Kingdom of Saudi Arabia.
“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.” – A.J. “Jim” Teague, co-chief executive officer of Enterprise’s general partner
The Bahia pipeline expansion reflects the energy sentiment in the United States
The planned increase in transportation capacity of the Bahia Pipeline reflects the sentiment on the ground in the United States. As the nation’s energy market expands, new and additional capacity will be needed to meet the demand for natural gas in and outside the United States. Market data has revealed that 2026 will see the US oil and gas pipeline capacity in the United States expand significantly, thanks in no small part to the upgraded Bahia Pipeline.
