The Shin Oak NGL Pipeline project to move natural gas liquids from the West Texas town of Orla to a processing and storage facility in Mont Belvieu, has its service started, announced on Thursday by Houston pipeline operator Enterprise Products Partners.
Shin Oak is designed and built as a 24-inch diameter 658-mile pipeline and is starting its service with an initial capacity to move 250,000 barrels of ethane, propane, butane and other natural gas liquids per day.
"The Shin Oak Pipeline represents another important addition to our expanding network of integrated midstream assets in the Permian Basin," Enterprise Products Partners CEO A.J. "Jim" Teague said in a statement.
The company is building a third natural gas processing plant in Orla that is expected to be completed by June. Another natural gas processing plant in the Loving County of Mentone is expected to begin service by March 2020. Combined, the Orla and Mentone facilities will give Enterprise more than 1.6 billion cubic feet per day of natural gas processing capacity and more than 250,000 barrels of natural gas liquids production per day in the Permian Basin.