Permian Pipeline Push: Enterprise & ExxonMobil Double Down on NGL Infrastructure

NEW YORK, NY – November 20, 2025

Riding the Permian Wave

Enterprise Products Partners L.P. and ExxonMobil have announced a joint venture to bolster NGL (Natural Gas Liquids) transportation capacity out of the Permian Basin, a move reflecting the continued surge in production from the prolific oil and gas region. ExxonMobil will take a 40% stake in Enterprise’s Bahia NGL pipeline, a system vital for moving mixed NGLs from West Texas to processing and fractionation hubs along the Gulf Coast. The agreement includes plans for a significant expansion, adding 92 miles of pipeline connecting to ExxonMobil’s Cowboy processing plant in New Mexico, and increasing capacity to 1 million barrels per day (BPD). This investment isn't just about building pipelines; it's a strategic bet on the sustained growth of NGLs and the evolving energy landscape.

“The Permian continues to be a key driver of U.S. energy production, and NGLs are becoming an increasingly important component of the overall supply picture,” noted one industry analyst. “This deal highlights the confidence both companies have in the long-term viability of the basin and the value of securing reliable takeaway capacity.”

Infrastructure Race Intensifies

The expansion of the Bahia pipeline isn't occurring in a vacuum. The Permian Basin is experiencing a wave of infrastructure investment as producers race to keep pace with rising output. Several other midstream players, including Targa Resources and ONEOK, are actively expanding their NGL pipeline networks. Targa’s recently announced Speedway pipeline, for example, will also connect the Permian to Mont Belvieu, creating a competitive landscape for NGL transportation.

“There’s a lot of activity in the Permian right now, and for good reason,” stated a source familiar with the project. “Producers are looking for dependable and cost-effective ways to get their products to market, and midstream companies are responding with significant investments in infrastructure.”

However, the rapid pace of development also raises questions about potential overcapacity. While current demand for NGLs is strong, driven by petrochemical manufacturing and export markets, a slowdown in economic growth or a shift towards renewable energy sources could impact future demand. Analysts suggest that companies are carefully weighing these risks before committing to large-scale infrastructure projects. “Companies are factoring in a range of scenarios, including potential supply chain disruptions and evolving consumer preferences,” explained one expert. “They’re building in flexibility and considering alternative uses for NGLs.”

Strategic Alignment and Market Power

The Enterprise-ExxonMobil joint venture appears to be driven by more than just infrastructure needs. It’s a strategic alignment between two energy giants that allows them to leverage their respective strengths and expand their market power. Enterprise brings its expertise in midstream operations and its extensive pipeline network, while ExxonMobil provides access to its processing facilities and its growing Permian production.

“This deal allows both companies to share the risks and rewards of developing this critical infrastructure,” commented one industry insider. “It also strengthens their position in the Permian Basin and allows them to better serve their customers.”

The addition of the Cowboy Connector Pipeline, linking the Bahia system directly to ExxonMobil's processing plant, is a key component of this strategy. It will enhance logistics for ExxonMobil's Permian operations and provide greater flexibility in moving NGLs to domestic and international markets. “The Cowboy plant is a central hub for ExxonMobil’s operations in the Permian,” explained a source familiar with the plant. “Connecting it directly to the Bahia pipeline will streamline operations and reduce transportation costs.”

The partnership also signals a growing trend towards vertical integration in the energy sector, where companies are seeking to control all aspects of the supply chain, from production to processing to transportation. “We’re seeing a lot more collaboration between producers, midstream companies, and refiners,” noted an analyst. “They’re realizing that they can achieve greater efficiencies and reduce costs by working together.”

The Future of NGLs in a Changing Energy Landscape

The long-term outlook for NGLs remains positive, driven by growing demand for petrochemical feedstocks and export markets. NGLs are essential ingredients in the production of plastics, synthetic fibers, and other industrial products, and demand is expected to continue to grow as the global economy expands.

However, the energy transition is also presenting new challenges and opportunities for the NGL industry. The shift towards renewable energy sources could reduce demand for fossil fuels, but it also creates new opportunities for NGLs as feedstocks for sustainable materials and chemicals. “NGLs can play a role in the circular economy by providing the building blocks for recyclable and biodegradable plastics,” explained one expert. “The industry needs to invest in research and development to unlock these opportunities.”

The continued growth of the Permian Basin, coupled with the increasing demand for NGLs, is creating a dynamic and competitive environment in the midstream sector. Companies that can adapt to the changing energy landscape and invest in innovative technologies will be best positioned to succeed. The Enterprise-ExxonMobil joint venture is a testament to this strategy, demonstrating a commitment to long-term growth and a willingness to invest in the future of NGLs.

“This is more than just a pipeline project,” concluded an industry observer. “It’s a signal that the Permian Basin remains a vital energy hub, and that NGLs will continue to play a critical role in the global energy landscape.”