ExxonMobil expands Bahia pipeline with new strategic investment

The capacity of the Bahia pipeline will increase from 600,000 to 1 million barrels per day thanks to this expansion.
ExxonMobil amplía el oleoducto Bahia

ExxonMobil has announced a significant investment to expand the capacity of its natural gas liquids pipeline. natural gas liquids pipeline Bahia natural gas liquids pipeline, operated by Enterprise Products Partners. This action raises daily transportation by 400,000 barrels to a total capacity of 1 million barrels per day.

The operation extends the infrastructure into Eddy County, New Mexico. There, it will integrate with ExxonMobil’s natural gas processing plant, strengthening what is now called the “Cowboy Connector” system.

Bahia Pipeline Adds 92 Key Miles

This agreement is part of a 40% stake that ExxonMobil has acquired in the Bahia pipeline, in a strategy that seeks to consolidate its presence in the midstream sector. midstream sector. The plan calls for a 92-mile extension that will connect directly to strategic assets in the Permian Basin, extending its reach to Mont Belvieu, the Gulf Coast fracking hub.

Thanks to this alliance, the efficient efficient transportation of unprocessed NGL to facilities where essential inputs for chemical and manufacturing industries are obtained. It also strengthens export routes from the region to global markets.

NGL boom redefines priorities

Enterprise notes that this move is in response to a projected increase of more than 30% in NGLs production. more than 30% increase in NGL production in the Permian Basin between 2024 and 2030. production in the Permian Basin between 2024 and 2030. ExxonMobil, for its part, believes that this investment optimizes its operational integration, while supporting sustained production growth.

The transaction is expected to close in early 2026 and the expanded infrastructure is expected to be operational by the last quarter of 2027.

Source: ExxonMobil

Photo: Shutterstock